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Document 31994D0001

94/1/EC, ECSC: Decision of the Council and the Commission of 13 December 1993 on the conclusion of the Agreement on the European Economic Area between the European Communities, their Member States and the Republic of Austria, the Republic of Finland, the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway, the Kingdom of Sweden and the Swiss Confederation

OJ L 1, 3.1.1994, p. 1–1 (ES, DA, DE, EL, EN, FR, IT, NL, PT)
Special edition in Finnish: Chapter 02 Volume 011 P. 37 - 37
Special edition in Swedish: Chapter 02 Volume 011 P. 37 - 37
Special edition in Czech: Chapter 11 Volume 019 P. 146 - 146
Special edition in Estonian: Chapter 11 Volume 019 P. 146 - 146
Special edition in Latvian: Chapter 11 Volume 019 P. 146 - 146
Special edition in Lithuanian: Chapter 11 Volume 019 P. 146 - 146
Special edition in Hungarian Chapter 11 Volume 019 P. 146 - 146
Special edition in Maltese: Chapter 11 Volume 019 P. 146 - 146
Special edition in Polish: Chapter 11 Volume 019 P. 146 - 146
Special edition in Slovak: Chapter 11 Volume 019 P. 146 - 146
Special edition in Slovene: Chapter 11 Volume 019 P. 146 - 146
Special edition in Bulgarian: Chapter 11 Volume 053 P. 3 - 3
Special edition in Romanian: Chapter 11 Volume 053 P. 3 - 3
Special edition in Croatian: Chapter 11 Volume 106 P. 3 - 3

In force

ELI: http://data.europa.eu/eli/dec/1994/1(1)/oj

3.1.1994   

EN

Official Journal of the European Communities

L 1/1


DECISION OF THE COUNCIL AND THE COMMISSION

of 13 December 1993

on the conclusion of the Agreement on the European Economic Area between the European Communities, their Member States and the Republic of Austria, the Republic of Finland, the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway, the Kingdom of Sweden and the Swiss Confederation

(94/1/ECSC, EC)

THE COUNCIL OF THE EUROPEAN UNION,

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Coal and Steel Community,

Having regard to the Treaty establishing the European Community, and in particular Article 238 in conjunction with Article 228 (3), second subparagraph thereof,

Having regard to the assent of the European Parliament (1),

Whereas the Agreement on the European Economic Area between the European Communities, their Member States and the Republic of Austria, the Republic of Finland, the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway, the Kingdom of Sweden and the Swiss Confederation, signed in Oporto on 2 May 1992 should be approved,

HAVE DECIDED AS FOLLOWS:

Article 1

The Agreement on the European Economic Area between the European Communities, their Member States and the Republic of Austria, the Republic of Finland, the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway, the Kingdom of Sweden and the Swiss Confederation, the Protocols, the Annexes annexed thereto and the Declarations, the Agreed Minutes and exchanges of letters attached to the Final Act are hereby approved on behalf of the European Community and the European Coal and Steel Community.

The texts of the acts referred to in the first paragraph are attached to this Decision.

Article 2

The act of approval provided for in Article 129 of the Agreement shall be deposited by the President of the Council on behalf of the European Community and by the President of the Commission on behalf of the European Coal and Steel Community (2).

Done at Brussels, 13 December 1993.

For the Council

The President

Ph. MAYSTADT

For the Commission

The President

J. DELORS


(1)  OJ No C 305, 23. 11. 1992, p. 66.

(2)  See page 606 of this Official Journal.


AGREEMENT ON THE EUROPEAN ECONOMIC AREA

TABLE OF CONTENTS

PREAMBLE 7

PART I

OBJECTIVES AND PRINCIPLES 9

PART II

FREE MOVEMENT OF GOODS 10

Chapter 1

Basic principles 10

Chapter 2

Agricultural and fishery products 11

Chapter 3

Cooperation in customs-related matters and trade facilitation 11

Chapter 4

Other rules relating to the free movement of goods 11

Chapter 5

Coal and steel products 12

PART III

FREE MOVEMENT OF PERSONS, SERVICES AND CAPITAL 12

Chapter 1

Workers and self-employed persons 12

Chapter 2

Right of establishment 13

Chapter 3

Services 13

Chapter 4

Capital 14

Chapter 5

Economic and monetary policy cooperation 14

Chapter 6

Transport 15

PART IV

COMPETITION AND OTHER COMMON RULES 15

Chapter 1

Rules applicable to undertakings 15

Chapter 2

State aid 17

Chapter 3

Other common rules 18

PART V

HORIZONTAL PROVISIONS RELEVANT TO THE FOUR FREEDOMS 19

Chapter 1

Social policy 19

Chapter 2

Consumer protection 19

Chapter 3

Environment 19

Chapter 4

Statistics 20

Chapter 5

Company law 20

PART VI

COOPERATION OUTSIDE THE FOUR FREEDOMS 20

PART VII

INSTITUTIONAL PROVISIONS 22

Chapter 1

The structure of the association 22

Chapter 2

The decision-making procedure 24

Chapter 3

Homogeneity, surveillance procedure and settlement of disputes 26

Chapter 4

Safeguard measures 28

PART VIII

FINANCIAL MECHANISM 28

PART IX

GENERAL AND FINAL PROVISIONS 29
PROTOCOLS 37
ANNEXES 219
FINAL ACT 523

PREAMBLE

THE EUROPEAN ECONOMIC COMMUNITY,

THE EUROPEAN COAL AND STEEL COMMUNITY,

THE KINGDOM OF BELGIUM,

THE KINGDOM OF DENMARK,

THE FEDERAL REPUBLIC OF GERMANY,

THE HELLENIC REPUBLIC,

THE KINGDOM OF SPAIN,

THE FRENCH REPUBLIC,

IRELAND,

THE ITALIAN REPUBLIC,

THE GRAND DUCHY OF LUXEMBOURG,

THE KINGDOM OF THE NETHERLANDS,

THE PORTUGUESE REPUBLIC,

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND

AND

THE REPUBLIC OF AUSTRIA,

THE REPUBLIC OF FINLAND,

THE REPUBLIC OF ICELAND,

THE PRINCIPALITY OF LIECHTENSTEIN,

THE KINGDOM OF NORWAY,

THE KINGDOM OF SWEDEN,

THE SWISS CONFEDERATION

hereinafter referred to as the CONTRACTING PARTIES;

CONVINCED of the contribution that a European Economic Area will bring to the construction of a Europe based on peace, democracy and human rights;

REAFFIRMING the high priority attached to the privileged relationship between the European Community, its Member States and the EFTA States, which is based on proximity, long-standing common values and European identity;

DETERMINED to contribute, on the basis of market economy, to world-wide trade liberalization and cooperation, in particular in accordance with the provisions of the General Agreement on Tariffs and Trade and the Convention on the Organization for Economic Cooperation and Development;

CONSIDERING the objective of establishing a dynamic and homogeneous European Economic Area, based on common rules and equal conditions of competition and providing for the adequate means of enforcement including at the judicial level, and achieved on the basis of equality and reciprocity and of an overall balance of benefits, rights and obligations for the Contracting Parties;

DETERMINED to provide for the fullest possible realization of the free movement of goods, persons, services and capital within the whole European Economic Area, as well as for strengthened and broadened cooperation in flanking and horizontal policies;

AIMING to promote a harmonious development of the European Economic Area and convinced of the need to contribute through the application of this Agreement to the reduction of economic and social regional disparities;

DESIROUS of contributing to the strengthening of the cooperation between the members of the European Parliament and of the Parliaments of the EFTA States, as well as between the social partners in the European Community and in the EFTA States;

CONVINCED of the important role that individuals will play in the European Economic Area through the exercise of the rights conferred on them by this Agreement and through the judicial defence of these rights;

DETERMINED to preserve, protect and improve the quality of the environment and to ensure a prudent and rational utilization of natural resources on the basis, in particular, of the principle of sustainable development, as well as the principle that precautionary and preventive action should be taken;

DETERMINED to take, in the further development of rules, a high level of protection concerning health, safety and the environment as a basis;

NOTING the importance of the development of the social dimension, including equal treatment of men and women, in the European Economic Area and wishing to ensure economic and social progress and to promote conditions for full employment, an improved standard of living and improved working conditions within the European Economic Area;

DETERMINED to promote the interests of consumers and to strengthen their position in the market place, aiming at a high level of consumer protection;

ATTACHED to the common objectives of strengthening the scientific and technological basis of European industry and of encouraging it to become more competitive at the international level;

CONSIDERING that the conclusion of this Agreement shall not prejudge in any way the possibility of any EFTA State to accede to the European Communities;

WHEREAS, in full deference to the independence of the courts, the objective of the Contracting Parties is to arrive at, and maintain, a uniform interpretation and application of this Agreement and those provisions of Community legislation which are substantially reproduced in this Agreement and to arrive at an equal treatment of individuals and economic operators as regards the four freedoms and the conditions of competition;

WHEREAS this Agreement does not restrict the decision-making autonomy or the treaty-making power of the Contracting Parties, subject to the provisions of this Agreement and the limitations set by public international law;

HAVE DECIDED to conclude the following Agreement:

PART I

OBJECTIVES AND PRINCIPLES

Article 1

1.   The aim of this Agreement of association is to promote a continuous and balanced strengthening of trade and economic relations between the Contracting Parties with equal conditions of competition, and the respect of the same rules, with a view to creating a homogeneous European Economic Area, hereinafter referred to as the EEA.

2.   In order to attain the objectives set out in paragraph 1, the association shall entail, in accordance with the provisions of this Agreement:

(a)

the free movement of goods;

(b)

the free movement of persons;

(c)

the free movement of services;

(d)

the free movement of capital;

(e)

the setting up of a system ensuring that competition is not distorted and that the rules thereon are equally respected; as well as

(f)

closer cooperation in other fields, such as research and development, the environment, education and social policy.

Article 2

For the purposes of this Agreement:

(a)

the term ‘Agreement’ means the main Agreement, its Protocols and Annexes as well as the acts referred to therein;

(b)

the term ‘EFTA States’ means the Contracting Parties, which are members of the European Free Trade Association;

(c)

the term ‘Contracting Parties’ means, concerning the Community and the EC Member States, the Community and the EC Member States, or the Community, or the EC Member States. The meaning to be attributed to this expression in each case is to be deduced from the relevant provisions of this Agreement and from the respective competences of the Community and the EC Member States as they follow from the Treaty establishing the European Economic Community and the Treaty establishing the European Coal and Steel Community.

Article 3

The Contracting Parties shall take all appropriate measures, whether general or particular, to ensure fulfilment of the obligations arising out of this Agreement.

They shall abstain from any measure which could jeopardize the attainment of the objectives of this Agreement,

Moreover, they shall facilitate cooperation within the framework of this Agreement.

Article 4

Within the scope of application of this Agreement, and without prejudice to any special provisions contained therein, any discrimination on grounds of nationality shall be prohibited.

Article 5

A Contracting Party may at any time raise a matter of concern at the level of the EEA Joint Committee or the EEA Council according to the modalities laid down in Articles 92(2) and 89(2), respectively.

Article 6

Without prejudice to future developments of case-law, the provisions of this Agreement, in so far as they are identical in substance to corresponding rules of the Treaty establishing the European Economic Community and the Treaty establishing the European Coal and Steel Community and to acts adopted in application of these two Treaties, shall, in their implementation and application, be interpreted in conformity with the relevant rulings of the Court of Justice of the European Communities given prior to the date of signature of this Agreement.

Article 7

Acts referred to or contained in the Annexes to this Agreement or in decisions of the EEA Joint Committee shall be binding upon the Contracting Parties and be, or be made, part of their internal legal order as follows:

(a)

an act corresponding to an EEC regulation shall as such be made part of the internal legal order of the Contracting Parties;

(b)

an act corresponding to an EEC directive shall leave to the authorities of the Contracting Parties the choice of form and method of implementation.

PART II

FREE MOVEMENT OF GOODS

CHAPTER 1

BASIC PRINCIPLES

Article 8

1.   Free movement of goods between the Contracting Parties shall be established in conformity with the provisions of this Agreement.

2.   Unless otherwise specified, Articles 10 to 15, 19, 20 and 25 to 27 shall apply only to products originating in the Contracting Parties.

3.   Unless otherwise specified, the provisions of this Agreement shall apply only to:

(a)

products falling within Chapters 25 to 97 of the Harmonized Commodity Description and Coding System, excluding the products listed in Protocol 2;

(b)

products specified in Protocol 3, subject to the specific arrangements set out in that Protocol.

Article 9

1.   The rules of origin are set out in Protocol 4. They are without prejudice to any international obligations which have been, or may be, subscribed to by the Contracting Parties under the General Agreement on Tariffs and Trade.

2.   With a view to developing the results achieved in this Agreement, the Contracting Parties will continue their efforts in order further to improve and simplify all aspects of rules of origin and to increase cooperation in customs matters.

3.   A first review will take place before the end of 1993. Subsequent reviews will take place at two-yearly intervals. On the basis of these reviews, the Contracting Parties undertake to decide on the appropriate measures to be included in this Agreement.

Article 10

Customs duties on imports and exports, and any charges having equivalent effect, shall be prohibited between the Contracting Parties. Without prejudice to the arrangements set out in Protocol 5, this shall also apply to customs duties of a fiscal nature.

Article 11

Quantitative restrictions on imports and all measures having equivalent effect shall be prohibited between the Contracting Parties.

Article 12

Quantitative restrictions on exports and all measures having equivalent effect shall be prohibited between the Contracting Parties.

Article 13

The provisions of Articles 11 and 12 shall not preclude prohibitions or restrictions on imports, exports or goods in transit justified on grounds of public morality, public policy or public security; the protection of health and life of humans, animals or plants; the protection of national treasures possessing artistic, historic or archaeological value; or the protection of industrial and commercial property. Such prohibitions or restrictions shall not, however, constitute a means of arbitrary discrimination or a disguised restriction on trade between the Contracting Parties.

Article 14

No Contracting Party shall impose, directly or indirectly, on the products of other Contracting Parties any internal taxation of any kind in excess of that imposed directly or indirectly on similar domestic products.

Furthermore, no Contracting Party shall impose on the products of other Contracting Parties any internal taxation of such a nature as to afford indirect protection to other products.

Article 15

Where products are exported to the territory of any Contracting Party, any repayment of internal taxation shall not exceed the internal taxation imposed on them whether directly or indirectly.

Article 16

1.   The Contracting Parties shall ensure that any State monopoly of a commercial character be adjusted so that no discrimination regarding the conditions under which goods are procured and marketed will exist between nationals of EC Member States and EFTA States.

2.   The provisions of this Article shall apply to any body through which the competent authorities of the Contracting Parties, in law or in fact, either directly or indirectly supervise, determine or appreciably influence imports or exports between Contracting Parties. These provisions shall likewise apply to monopolies delegated by the State to others.

CHAPTER 2

AGRICULTURAL AND FISHERY PRODUCTS

Article 17

Annex I contains specific provisions and arrangements concerning veterinary and phytosanitary matters.

Article 18

Without prejudice to the specific arrangements governing trade in agricultural products, the Contracting Parties shall ensure that the arrangements provided for in Articles 17 and 23 (a) and (b), as they apply to products other than those covered by Article 8(3), are not compromised by other technical barriers to trade. Article 13 shall apply.

Article 19

1.   The Contracting Parties shall examine any difficulties that might arise in their trade in agricultural products and shall endeavour to seek appropriate solutions.

2.   The Contracting Parties undertake to continue their efforts with a view to achieving progressive liberalization of agricultural trade.

3.   To this end, the Contracting Parties will carry out, before the end of 1993 and subsequently at two-yearly intervals, reviews of the conditions of trade in agricultural products.

4.   In the light of the results of these reviews, within the framework of their respective agricultural policies and taking into account the results of the Uruguay Round, the Contracting Parties will decide, within the framework of this Agreement, on a preferential, bilateral or multilateral, reciprocal and mutually beneficial basis, on further reductions of any type of barriers to trade in the agricultural sector, including those resulting from State monopolies of a commercial character in the agricultural field.

Article 20

Provisions and arrangements that apply to fish and other marine products are set out in Protocol 9.

CHAPTER 3

COOPERATION IN CUSTOMS-RELATED MATTERS AND TRADE FACILITATION

Article 21

1.   In order to facilitate trade between them, the Contracting Parties shall simplify border controls and formalities. Arrangements for this purpose are set out in Protocol 10.

2.   The Contracting Parties shall assist each other in customs matters in order to ensure that customs legislation is correctly applied. Arrangements for this purpose are set out in Protocol 11.

3.   The Contracting Parties shall strengthen and broaden cooperation with the aim of simplifying the procedures for trade in goods, in particular in the context of Community programmes, projects and actions aimed at trade facilitation, in accordance with the rules set out in Part VI.

4.   Notwithstanding Article 8(3), this Article shall apply to all products.

Article 22

A Contracting Party which is considering the reduction of the effective level of its duties or charges having equivalent effect applicable to third countries benefiting from most-favoured-nation treatment, or which is considering the suspension of their application, shall, as far as may be practicable, notify the EEA Joint Committee not later than 30 days before such reduction or suspension comes into effect. It shall take note of any representations by other Contracting Parties regarding any distortions which might result therefrom.

CHAPTER 4

OTHER RULES RELATING TO THE FREE MOVEMENT OF GOODS

Article 23

Specific provisions and arrangements are laid down in:

(a)

Protocol 12 and Annex II in relation to technical regulations, standards, testing and certification;

(b)

Protocol 47 in relation to the abolition of technical barriers to trade in wine;

(c)

Annex III in relation to product liability.

They shall apply to all products unless otherwise specified.

Article 24

Annex IV contains specific provisions and arrangements concerning energy.

Article 25

Where compliance with the provisions of Articles 10 and 12 leads to:

(a)

re-export towards a third country against which the exporting Contracting Party maintains, for the product concerned, quantitative export restrictions, export duties or measures or charges having equivalent effect; or

(b)

a serious shortage, or threat thereof, of a product essential to the exporting Contracting Party;

and where the situations referred to above give rise, or are likely to give rise, to major difficulties for the exporting Contracting Party, that Contracting Party may take appropriate measures in accordance with the procedures set out in Article 113.

Article 26

Anti-dumping measures, countervailing duties and measures against illicit commercial practices attributable to third countries shall not be applied in relations between the Contracting Parties, unless otherwise specified in this Agreement.

CHAPTER 5

COAL AND STEEL PRODUCTS

Article 27

Provisions and arrangements concerning coal and steel products are set out in Protocols 14 and 25.

PART III

FREE MOVEMENT OF PERSONS, SERVICES AND CAPITAL

CHAPTER 1

WORKERS AND SELF-EMPLOYED PERSONS

Article 28

1.   Freedom of movement for workers shall be secured among EC Member States and EFTA States.

2.   Such freedom of movement shall entail the abolition of any discrimination based on nationality between workers of EC Member States and EFTA States as regards employment, remuneration and other conditions of work and employment.

3.   It shall entail the right, subject to limitations justified on grounds of public policy, public security or public health:

(a)

to accept offers of employment actually made;

(b)

to move freely within the territory of EC Member States and EFTA States for this purpose;

(c)

to stay in the territory of an EC Member State or an EFTA State for the purpose of employment in accordance with the provisions governing the employment of nationals of that State laid down by law, regulation or administrative action;

(d)

to remain in the territory of an EC Member State or an EFTA State after having been employed there.

4.   The provisions of this Article shall not apply to employment in the public service.

5.   Annex V contains specific provisions on the free movement of workers.

Article 29

In order to provide freedom of movement for workers and self-employed persons, the Contracting Parties shall, in the field of social security, secure, as provided for in Annex VI, for workers and self-employed persons and their dependants, in particular:

(a)

aggregation, for the purpose of acquiring and retaining the right to benefit and of calculating the amount of benefit, of all periods taken into account under the laws of the several countries;

(b)

payment of benefits to persons resident in the territories of Contracting Parties.

Article 30

In order to make it easier for persons to take up and pursue activities as workers and self-employed persons, the Contracting Parties shall take the necessary measures, as contained in Annex VII, concerning the mutual recognition of diplomas, certificates and other evidence of formal qualifications, and the coordination of the provisions laid down by law, regulation or administrative action in the Contracting Parties concerning the taking up and pursuit of activities by workers and self-employed persons.

CHAPTER 2

RIGHT OF ESTABLISHMENT

Article 31

1.   Within the framework of the provisions of this Agreement, there shall be no restrictions on the freedom of establishment of nationals of an EC Member State or an EFTA State in the territory of any other of these States. This shall also apply to the setting up of agencies, branches or subsidiaries by nationals of any EC Member State or EFTA State established in the territory of any of these States.

Freedom of establishment shall include the right to take up and pursue activities as self-employed persons and to set up and manage undertakings, in particular companies or firms within the meaning of Article 34, second paragraph, under the conditions laid down for its own nationals by the law of the country where such establishment is effected, subject to the provisions of Chapter 4.

2.   Annexes VIII to XI contain specific provisions on the right of establishment.

Article 32

The provisions of this Chapter shall not apply, so far as any given Contracting Party is concerned, to activities which in that Contracting Party are connected, even occasionally, with the exercise of official authority.

Article 33

The provisions of this Chapter and measures taken in pursuance thereof shall not prejudice the applicability of provisions laid down by law, regulation or administrative action providing for special treatment for foreign nationals on grounds of public policy, public security or public health.

Article 34

Companies or firms formed in accordance with the law of an EC Member State or an EFTA State and having their registered office, central administration or principal place of business within the territory of the Contracting Parties shall, for the purposes of this Chapter, be treated in the same way as natural persons who are nationals of EC Member States or EFTA States.

‘Companies or firms’ means companies or firms constituted under civil or commercial law, including cooperative societies, and other legal persons governed by public or private law, save for those which are non-profit-making.

Article 35

The provisions of Article 30 shall apply to the matters covered by this Chapter.

CHAPTER 3

SERVICES

Article 36

1.   Within the framework of the provisions of this Agreement, there shall be no restrictions on freedom to provide services within the territory of the Contracting Parties in respect of nationals of EC Member States and EFTA States who are established in an EC Member State or an EFTA State other than that of the person for whom the services are intended.

2.   Annexes IX to XI contain specific provisions on the freedom to provide services.

Article 37

Services shall be considered to be ‘services’ within the meaning of this Agreement where they are normally provided for remuneration, in so far as they are not governed by the provisions relating to freedom of movement for goods, capital and persons.

‘Services’ shall in particular include:

(a)

activities of an industrial character;

(b)

activities of a commercial character;

(c)

activities of craftsmen;

(d)

activities of the professions.

Without prejudice to the provisions of Chapter 2, the person providing a service may, in order to do so, temporarily pursue his activity in the State where the service is provided, under the same conditions as are imposed by that State on its own nationals.

Article 38

Freedom to provide services in the field of transport shall be governed by the provisions of Chapter 6.

Article 39

The provisions of Articles 30 and 32 to 34 shall apply to the matters covered by this Chapter.

CHAPTER 4

CAPITAL

Article 40

Within the framework of the provisions of this Agreement, there shall be no restrictions between the Contracting Parties on the movement of capital belonging to persons resident in EC Member States or EFTA States and no discrimination based on the nationality or on the place of residence of the parties or on the place where such capital is invested. Annex XII contains the provisions necessary to implement this Article.

Article 41

Current payments connected with the movement of goods, persons, services or capital between Contracting Parties within the framework of the provisions of this Agreement shall be free of all restrictions.

Article 42

1.   Where domestic rules governing the capital market and the credit system are applied to the movements of capital liberalized in accordance with the provisions of this Agreement, this shall be done in a non-discriminatory manner.

2.   Loans for the direct or indirect financing of an EC Member State or an EFTA State or its regional or local authorities shall not be issued or placed in other EC Member States or EFTA States unless the States concerned have reached agreement thereon.

Article 43

1.   Where differences between the exchange rules of EC Member States and EFTA States could lead persons resident in one of these States to use the freer transfer facilities within the territory of the Contracting Parties which are provided for in Article 40 in order to evade the rules of one of these States concerning the movement of capital to or from third countries, the Contracting Party concerned may take appropriate measures to overcome these difficulties.

2.   If movements of capital lead to disturbances in the functioning of the capital market in any EC Member State or EFTA State, the Contracting Party concerned may take protective measures in the field of capital movements.

3.   If the competent authorities of a Contracting Party make an alteration in the rate of exchange which seriously distorts conditions of competition, the other Contracting Parties may take, for a strictly limited period, the necessary measures in order to counter the consequences of such alteration.

4.   Where an EC Member State or an EFTA State is in difficulties, or is seriously threatened with difficulties, as regards its balance of payments either as a result of an overall disequilibrium in its balance of payments, or as a result of the type of currency at its disposal, and where such difficulties are liable in particular to jeopardize the functioning of this Agreement, the Contracting Party concerned may take protective measures.

Article 44

The Community, on the one hand, and the EFTA States, on the other, shall apply their internal procedures, as provided for in Protocol 18, to implement the provisions of Article 43.

Article 45

1.   Decisions, opinions and recommendations related to the measures laid down in Article 43 shall be notified to the EEA Joint Committee.

2.   All measures shall be the subject of prior consultations and exchange of information within the EEA Joint Committee.

3.   In the situation referred to in Article 43(2), the Contracting Party concerned may, however, on the grounds of secrecy and urgency take the measures, where this proves necessary, without prior consultations and exchange of information.

4.   In the situation referred to in Article 43(4), where a sudden crisis in the balance of payments occurs and the procedures set out in paragraph 2 cannot be followed, the Contracting Party concerned may, as a precaution, take the necessary protective measures. Such measures must cause the least possible disturbance in the functioning of this Agreement and must not be wider in scope than is strictly necessary to remedy the sudden difficulties which have arisen.

5.   When measures are taken in accordance with paragraphs 3 and 4, notice thereof shall be given at the latest by the date of their entry into force, and the exchange of information and consultations as well as the notifications referred to in paragraph 1 shall take place as soon as possible thereafter.

CHAPTER 5

ECONOMIC AND MONETARY POLICY COOPERATION

Article 46

The Contracting Parties shall exchange views and information concerning the implementation of this Agreement and the impact of the integration on economic activities and on the conduct of economic and monetary policies. Furthermore, they may discuss macroeconomic situations, policies and prospects. This exchange of views and information shall take place on a non-binding basis.

CHAPTER 6

TRANSPORT

Article 47

1.   Articles 48 to 52 shall apply to transport by rail, road and inland waterway.

2.   Annex XIII contains specific provisions on all modes of transport.

Article 48

1.   The provisions of an EC Member State or an EFTA State, relative to transport by rail, road and inland waterway and not covered by Annex XIII, shall not be made less favourable in their direct or indirect effect on carriers of other States as compared with carriers who are nationals of that State.

2.   Any Contracting Party deviating from the principle laid down in paragraph 1 shall notify the EEA Joint Committee thereof. The other Contracting Parties which do not accept the deviation may take corresponding countermeasures.

Article 49

Aid shall be compatible with this Agreement if it meets the needs of coordination of transport or if it represents reimbursement for the discharge of certain obligations inherent in the concept of a public service.

Article 50

1.   In the case of transport within the territory of the Contracting Parties, there shall be no discrimination which takes the form of carriers charging different rates and imposing different conditions for the carriage of the same goods over the same transport links on grounds of the country of origin or of destination of the goods in question.

2.   The competent authority according to Part VII shall, acting on its own initiative or on application by an EC Member State or an EFTA State, investigate any cases of discrimination falling within this Article and take the necessary decisions within the framework of its internal rules.

Article 51

1.   The imposition, in respect of transport operations carried out within the territory of the Contracting Parties, of rates and conditions involving any element of support or protection in the interest of one or more particular undertakings or industries, shall be prohibited unless authorized by the competent authority referred to in Article 50(2).

2.   The competent authority shall, acting on its own initiative or on application by an EC Member State or an EFTA State, examine the rates and conditions referred to in paragraph 1, taking account in particular of the requirements of an appropriate regional economic policy, the needs of underdeveloped areas and the problems of areas seriously affected by political circumstances, on the one hand, and of the effects of such rates and conditions on competition between the different modes of transport, on the other.

The competent authority shall take the necessary decisions within the framework of its internal rules.

3.   The prohibition provided for in paragraph 1 shall not apply to tariffs fixed to meet competition.

Article 52

Charges or dues in respect of the crossing of frontiers which are charged by a carrier in addition to transport rates shall not exceed a reasonable level after taking the costs actually incurred thereby into account. The Contracting Parties shall endeavour to reduce these costs progressively.

PART IV

COMPETITION AND OTHER COMMON RULES

CHAPTER 1

RULES APPLICABLE TO UNDERTAKINGS

Article 53

1.   The following shall be prohibited as incompatible with the functioning of this Agreement: all agreements between undertakings, decisions by associations of undertakings and concerted practices which may affect trade between Contracting Parties and which have as their object or effect the prevention, restriction or distortion of competition within the territory covered by this Agreement, and in particular those which:

(a)

directly or indirectly fix purchase or selling prices or any other trading conditions;

(b)

limit or control production, markets, technical development, or investment;

(c)

share markets or sources of supply;

(d)

apply dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;

(e)

make the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

2.   Any agreements or decisions prohibited pursuant to this Article shall be automatically void.

3.   The provisions of paragraph 1 may, however, be declared inapplicable in the case of:

any agreement or category of agreements between undertakings;

any decision or category of decisions by associations of undertakings;

any concerted practice or category of concerted practices;

which contributes to improving the production or distribution of goods or to promoting technical or economic progress, while allowing consumers a fair share of the resulting benefit, and which does not:

(a)

impose on the undertakings concerned restrictions which are not indispensable to the attainment of these objectives;

(b)

afford such undertakings the possibility of eliminating competition in respect of a substantial part of the products in question.

Article 54

Any abuse by one or more undertakings of a dominant position within the territory covered by this Agreement or in a substantial part of it shall be prohibited as incompatible with the functioning of this Agreement in so far as it may affect trade between Contracting Parties.

Such abuse may, in particular, consist in:

(a)

directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions;

(b)

limiting production, markets or technical development to the prejudice of consumers;

(c)

applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage;

(d)

making the conclusion of contracts subject to acceptance by the other parties of supplementary obligations which, by their nature or according to commercial usage, have no connection with the subject of such contracts.

Article 55

1.   Without prejudice to the provisions giving effect to Articles 53 and 54 as contained in Protocol 21 and Annex XIV of this Agreement, the EC Commission and the EFTA Surveillance Authority provided for in Article 108(1) shall ensure the application of the principles laid down in Articles 53 and 54.

The competent surveillance authority, as provided for in Article 56, shall investigate cases of suspected infringement of these principles, on its own initiative, or on application by a State within the respective territory or by the other surveillance authority. The competent surveillance authority shall carry out these investigations in cooperation with the competent national authorities in the respective territory and in cooperation with the other surveillance authority, which shall give it its assistance in accordance with its internal rules.

If it finds that there has been an infringement, it shall propose appropriate measures to bring it to an end.

2.   If the infringement is not brought to an end, the competent surveillance authority shall record such infringement of the principles in a reasoned decision.

The competent surveillance authority may publish its decision and authorize States within the respective territory to take the measures, the conditions and details of which it shall determine, needed to remedy the situation. It may also request the other surveillance authority to authorize States within the respective territory to take such measures.

Article 56

1.   Individual cases falling under Article 53 shall be decided upon by the surveillance authorities in accordance with the following provisions:

(a)

individual cases where only trade between EFTA States is affected shall be decided upon by the EFTA Surveillance Authority;

(b)

without prejudice to subparagraph (c), the EFTA Surveillance Authority decides, as provided for in the provisions set out in Article 58, Protocol 21 and the rules adopted for its implementation, Protocol 23 and Annex XIV, on cases where the turnover of the undertakings concerned in the territory of the EFTA States equals 33% or more of their turnover in the territory covered by this Agreement;

(c)

the EC Commission decides on the other cases as well as on cases under (b) where trade between EC Member States is affected, taking into account the provisions set out in Article 58, Protocol 21, Protocol 23 and Annex XIV.

2.   Individual cases falling under Article 54 shall be decided upon by the surveillance authority in the territory of which a dominant position is found to exist. The rules set out in paragraph l(b) and (c) shall apply only if dominance exists within the territories of both surveillance authorities.

3.   Individual cases falling under subparagraph (c) of paragraph 1, whose effects on trade between EC Member States or on competition within the Community are not appreciable, shall be decided upon by the EFTA Surveillance Authority.

4.   The terms ‘undertaking’ and ‘turnover’ are, for the purposes of this Article, defined in Protocol 22.

Article 57

1.   Concentrations the control of which is provided for in paragraph 2 and which create or strengthen a dominant position as a result of which effective competition would be significantly impeded within the territory covered by this Agreement or a substantial part of it, shall be declared incompatible with this Agreement.

2.   The control of concentrations falling under paragraph 1 shall be carried out by:

(a)

the EC Commission in cases falling under Regulation (EEC) No 4064/89 in accordance with that Regulation and in accordance with Protocols 21 and 24 and Annex XIV to this Agreement. The EC Commission shall, subject to the review of the EC Court of Justice, have sole competence to take decisions on these cases;

(b)

the EFTA Surveillance Authority in cases not falling under subparagraph (a) where the relevant thresholds set out in Annex XIV are fulfilled in the territory of the EFTA States in accordance with Protocols 21 and 24 and Annex XIV. This is without prejudice to the competence of EC Member States.

Article 58

With a view to developing and maintaining a uniform surveillance throughout the European Economic Area in the field of competition and to promoting a homogeneous implementation, application and interpretation of the provisions of this Agreement to this end, the competent authorities shall cooperate in accordance with the provisions set out in Protocols 23 and 24.

Article 59

1.   In the case of public undertakings and undertakings to which EC Member States or EFTA States grant special or exclusive rights, the Contracting Parties shall ensure that there is neither enacted nor maintained in force any measure contrary to the rules contained in this Agreement, in particular to those rules provided for in Articles 4 and 53 to 63.

2.   Undertakings entrusted with the operation of services of general economic interest or having the character of a revenue-producing monopoly shall be subject to the rules contained in this Agreement, in particular to the rules on competition, in so far as the application of such rules does not obstruct the performance, in law or in fact, of the particular tasks assigned to them. The development of trade must not be affected to such an extent as would be contrary to the interests of the Contracting Parties.

3.   The EC Commission as well as the EFTA Surveillance Authority shall ensure within their respective competence the application of the provisions of this Article and shall, where necessary, address appropriate measures to the States falling within their respective territory.

Article 60

Annex XIV contains specific provisions giving effect to the principles set out in Articles 53, 54, 57 and 59.

CHAPTER 2

STATE AID

Article 61

1.   Save as otherwise provided in this Agreement, any aid granted by EC Member States, EFTA States or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods shall, in so far as it affects trade between Contracting Parties, be incompatible with the functioning of this Agreement.

2.   The following shall be compatible with the functioning of this Agreement:

(a)

aid having a social character, granted to individual consumers, provided that such aid is granted without discrimination related to the origin of the products concerned;

(b)

aid to make good the damage caused by natural disasters or exceptional occurrences;

(c)

aid granted to the economy of certain areas of the Federal Republic of Germany affected by the division of Germany, in so far as such aid is required in order to compensate for the economic disadvantages caused by that division.

3.   The following may be considered to be compatible with the functioning of this Agreement:

(a)

aid to promote the economic development of areas where the standard of living is abnormally low or where there is serious underemployment;

(b)

aid to promote the execution of an important project of common European interest or to remedy a serious disturbance in the economy of an EC Member State or an EFTA State;

(c)

aid to facilitate the development of certain economic activities or of certain economic areas, where such aid does not adversely affect trading conditions to an extent contrary to the common interest;

(d)

such other categories of aid as may be specified by the EEA Joint Committee in accordance with Part VII.

Article 62

1.   All existing systems of State aid in the territory of the Contracting Parties, as well as any plans to grant or alter State aid, shall be subject to constant review as to their compatibility with Article 61. This review shall be carried out:

(a)

as regards the EC Member States, by the EC Commission according to the rules laid down in Article 93 of the Treaty establishing the European Economic Community;

(b)

as regards the EFTA States, by the EFTA Surveillance Authority according to the rules set out in an agreement between the EFTA States establishing the EFTA Surveillance Authority which is entrusted with the powers and functions laid down in Protocol 26.

2.   With a view to ensuring a uniform surveillance in the field of State aid throughout the territory covered by this Agreement, the EC Commission and the EFTA Surveillance Authority shall cooperate in accordance with the provisions set out in Protocol 27.

Article 63

Annex XV contains specific provisions on State aid.

Article 64

1.   If one of the surveillance authorities considers that the implementation by the other surveillance authority of Articles 61 and 62 of this Agreement and Article 5 of Protocol 14 is not in conformity with the maintenance of equal conditions of competition within the territory covered by this Agreement, exchange of views shall be held within two weeks according to the procedure of Protocol 27, paragraph (f).

If a commonly agreed solution has not been found by the end of this two-week period, the competent authority of the affected Contracting Party may immediately adopt appropriate interim measures in order to remedy the resulting distortion of competition.

Consultations shall then be held in the EEA Joint Committee with a view to finding a commonly acceptable solution.

If within three months the EEA Joint Committee has not been able to find such a solution, and if the practice in question causes, or threatens to cause, distortion of competition affecting trade between the Contracting Parties, the interim measures may be replaced by definitive measures, strictly necessary to offset the effect of such distortion. Priority shall be given to such measures that will least disturb the functioning of the EEA.

2.   The provisions of this Article will also apply to State monopolies, which are established after the date of signature of the Agreement.

CHAPTER 3

OTHER COMMON RULES

Article 65

1.   Annex XVI contains specific provisions and arrangements concerning procurement which, unless otherwise specified, shall apply to all products and to services as specified.

2.   Protocol 28 and Annex XVII contain specific provisions and arrangements concerning intellectual, industrial and commercial property, which, unless otherwise specified, shall apply to all products and services.

PART V

HORIZONTAL PROVISIONS RELEVANT TO THE FOUR FREEDOMS

CHAPTER 1

SOCIAL POLICY

Article 66

The Contracting Parties agree upon the need to promote improved working conditions and an improved standard of living for workers.

Article 67

1.   The Contracting Parties shall pay particular attention to encouraging improvements, especially in the working environment, as regards the health and safety of workers. In order to help achieve this objective, minimum requirements shall be applied for gradual implementation, having regard to the conditions and technical rules obtaining in each of the Contracting Parties. Such minimum requirements shall not prevent any Contracting Party from maintaining or introducing more stringent measures for the protection of working conditions compatible with this Agreement.

2.   Annex XVIII specifies the provisions to be implemented as the minimum requirements referred to in paragraph 1.

Article 68

In the field of labour law, the Contracting Parties shall introduce the measures necessary to ensure the good functioning of this Agreement. These measures are specified in Annex XVIII.

Article 69

1.   Each Contracting Party shall ensure and maintain the application of the principle that men and women should receive equal pay for equal work.

For the purposes of this Article, ‘pay’ means the ordinary basic or minimum wage or salary and any other consideration, whether in cash or in kind, which the worker receives, directly or indirectly, in respect of his employment from his employer.

Equal pay without discrimination based on sex means:

(a)

that pay for the same work at piece rates shall be calculated on the basis of the same unit of measurement;

(b)

that pay for work at time rates shall be the same for the same job.

2.   Annex XVIII contains specific provisions for the implementation of paragraph 1.

Article 70

The Contracting Parties shall promote the principle of equal treatment for men and women by implementing the provisions specified in Annex XVIII.

Article 71

The Contracting Parties shall endeavour to promote the dialogue between management and labour at European level.

CHAPTER 2

CONSUMER PROTECTION

Article 72

Annex XIX contains provisions on consumer protection.

CHAPTER 3

ENVIRONMENT

Article 73

1.   Action by the Contracting Parties relating to the environment shall have the following objectives:

(a)

to preserve, protect and improve the quality of the environment;

(b)

to contribute towards protecting human health;

(c)

to ensure a prudent and rational utilization of natural resources.

2.   Action by the Contracting Parties relating to the environment shall be based on the principles that preventive action should be taken, that environmental damage should as a priority be rectified at source, and that the polluter should pay. Environmental protection requirements shall be a component of the Contracting Parties' other policies.

Article 74

Annex XX contains the specific provisions on protective measures which shall apply pursuant to Article 73.

Article 75

The protective measures referred to in Article 74 shall not prevent any Contracting Party from maintaining or introducing more stringent protective measures compatible with this Agreement.

CHAPTER 4

STATISTICS

Article 76

1.   The Contracting Parties shall ensure the production and dissemination of coherent and comparable statistical information for describing and monitoring all relevant economic, social and environmental aspects of the EEA.

2.   To this end the Contracting Parties shall develop and use harmonized methods, definitions and classifications as well as common programmes and procedures organizing statistical work at appropriate administrative levels and duly observing the need for statistical confidentiality.

3.   Annex XXI contains specific provisions on statistics.

4.   Protocol 30 contains specific provisions on the organization of cooperation in the field of statistics.

CHAPTER 5

COMPANY LAW

Article 77

Annex XXII contains specific provisions on company law.

PART VI

COOPERATION OUTSIDE THE FOUR FREEDOMS

Article 78

The Contracting Parties shall strengthen and broaden cooperation in the framework of the Community's activities in the fields of:

research and technological development,

information services,

the environment,

education, training and youth,

social policy,

consumer protection,

small and medium-sized enterprises,

tourism,

the audiovisual sector, and

civil protection,

in so far as these matters are not regulated under the provisions of other Parts of this Agreement.

Article 79

1.   The Contracting Parties shall strengthen the dialogue between them by all appropriate means, in particular through the procedures provided for in Part VII, with a view to identifying areas and activities where closer cooperation could contribute to the attainment of their common objectives in the fields referred to in Article 78.

2.   They shall, in particular, exchange information and, at the request of a Contracting Party, hold consultations within the EEA Joint Committee in respect of plans or proposals for the establishment or amendment of framework programmes, specific programmes, actions and projects in the fields referred to in Article 78.

3.   Part VII shall apply mutatis mutandis with regard to this Part whenever the latter or Protocol 31 specifically provides therefor.

Article 80

The cooperation provided for in Article 78 shall normally take one of the following forms:

participation by EFTA States in EC framework programmes, specific programmes, projects or other actions;

establishment of joint activities in specific areas, which may include concertation or coordination of activities, fusion of existing activities and establishment of ad hoc joint activities;

the formal and informal exchange or provision of information;

common efforts to encourage certain activities throughout the territory of the Contracting Parties;

parallel legislation, where appropriate, of identical or similar content;

coordination, where this is of mutual interest, of efforts and activities via, or in the context of, international organizations, and of cooperation with third countries.

Article 81

Where cooperation takes the form of participation by EFTA States in an EC framework programme, specific programme, project or other action, the following principles shall apply:

(a)

The EFTA States shall have access to all parts of a programme.

(b)

The status of the EFTA States in the committees which assist the EC Commission in the management or development of a Community activity to which EFTA States may be contributing financially by virtue of their participation shall take full account of that contribution.

(c)

Decisions by the Community, other than those relating to the general budget of the Community, which affect directly or indirectly a framework programme, specific programme, project or other action, in which EFTA States participate by a decision under this Agreement, shall be subject to the provisions of Article 79(3). The terms and conditions of the continued participation in the activity in question may be reviewed by the EEA Joint Committee in accordance with Article 86.

(d)

At the project level, institutions, undertakings, organizations and nationals of EFTA States shall have the same rights and obligations in the Community programme or other action in question as those applicable to partner institutions, undertakings, organizations and nationals of EC Member States. The same shall apply mutatis mutandis to participants in exchanges between EC Member States and EFTA States, under the activity in question.

(e)

EFTA States, their institutions, undertakings, organizations and nationals shall have the same rights and obligations with regard to dissemination, evaluation and exploitation of results as those applicable to EC Member States, their institutions, undertakings, organizations and nationals.

(f)

The Contracting Parties undertake, in accordance with their respective rules and regulations, to facilitate the movement of participants in the programme and other action to the extent necessary.

Article 82

1.   When the cooperation envisaged under the present Part involves a financial participation of the EFTA States, this participation shall take one of the following forms:

(a)

The contribution of the EFTA States, arising from their participation in Community activities, shall be calculated proportionally:

to the commitment appropriations; and

to the payment appropriations;

entered each year for the Community in the general budget of the Community for each budgetary line corresponding to the activities in question.

The ‘proportionality factor’ determining the participation of the EFTA States shall be the sum of the ratios between, on the one hand, the gross domestic product at market prices of each of the EFTA States and, on the other hand, the sum of the gross domestic products at market prices of the EC Member States and of that EFTA State. This factor shall be calculated, for each budgetary year, on the basis of the most recent statistical data.

The amount of the contribution of the EFTA States shall be additional, both in commitment appropriations and in payment appropriations, to the amounts entered for the Community in the general budget on each line corresponding to the activities concerned.

The contributions to be paid each year by the EFTA States shall be determined on the basis of the payment appropriations.

Commitments entered into by the Community prior to the entry into force, on the basis of this Agreement, of the participation of the EFTA States in the activities in question — as well as the payments which result from this — shall give rise to no contribution on the part of the EFTA States.

(b)

The financial contribution of the EFTA States deriving from their participation in certain projects or other activities shall be based on the principle that each Contracting Party shall cover its own costs, with an appropriate contribution which shall be fixed by the EEA Joint Committee to the Community's overhead costs.

(c)

The EEA Joint Committee shall take the necessary decisions concerning the contribution of the Contracting Parties to the costs of the activity in question.

2.   The detailed provisions for the implementation of this Article are set out in Protocol 32.

Article 83

Where cooperation takes the form of an exchange of information between public authorities, the EFTA States shall have the same rights to receive, and obligations to provide, information as EC Member States, subject to the requirements of confidentiality, which shall be fixed by the EEA Joint Committee.

Article 84

Provisions governing cooperation in specific fields are set out in Protocol 31.

Article 85

Unless otherwise provided for in Protocol 31, cooperation already established between the Community and individual EFTA States in the fields referred to in Article 78 on the date of entry into force of this Agreement shall thereafter be governed by the relevant provisions of this Part and of Protocol 31.

Article 86

The EEA Joint Committee shall, in accordance with Part VII, take all decisions necessary for the implementation of Articles 78 to 85 and measures derived therefrom, which may include, inter alia, supplementing and amending the provisions of Protocol 31, as well as adopting any transitional arrangements required by way of implementation of Article 85.

Article 87

The Contracting Parties shall take the necessary steps to develop, strengthen or broaden cooperation in the framework of the Community's activities in fields not listed in Article 78, where such cooperation is considered likely to contribute to the attainment of the objectives of this Agreement, or is otherwise deemed by the Contracting Parties to be of mutual interest. Such steps may include the amendment of Article 78 by the addition of new fields to those listed therein.

Article 88

Without prejudice to provisions of other Parts of this Agreement, the provisions of this Part shall not preclude the possibility for any Contracting Party to prepare, adopt and implement measures independently.

PART VII

INSTITUTIONAL PROVISIONS

CHAPTER 1

THE STRUCTURE OF THE ASSOCIATION

Section 1

The EEA Council

Article 89

1.   An EEA Council is hereby established. It shall, in particular, be responsible for giving the political impetus in the implementation of this Agreement and laying down the general guidelines for the EEA Joint Committee.

To this end, the EEA Council shall assess the overall functioning and the development of the Agreement. It shall take the political decisions leading to amendments of the Agreement.

2.   The Contracting Parties, as to the Community and the EC Member States in their respective fields of competence, may, after having discussed it in the EEA Joint Committee, or directly in exceptionally urgent cases, raise in the EEA Council any issue giving rise to a difficulty.

3.   The EEA Council shall by decision adopt its rules of procedure.

Article 90

1.   The EEA Council shall consist of the members of the Council of the European Communities and members of the EC Commission, and of one member of the Government of each of the EFTA States.

Members of the EEA Council may be represented in accordance with the conditions to be laid down in its rules of procedure.

2.   Decisions by the EEA Council shall be taken by agreement between the Community, on the one hand, and the EFTA States, on the other.

Article 91

1.   The office of President of the EEA Council shall be held alternately, for a period of six months, by a member of the Council of the European Communities and a member of the Government of an EFTA State,

2.   The EEA Council shall be convened twice a year by its President. The EEA Council shall also meet whenever circumstances so require, in accordance with its rules of procedure.

Section 2

The EEA Joint Committee

Article 92

1.   An EEA Joint Committee is hereby established. It shall ensure the effective implementation and operation of this Agreement. To this end, it shall carry out exchanges of views and information and take decisions in the cases provided for in this Agreement.

2.   The Contracting Parties, as to the Community and the EC Member States in their respective fields of competence, shall hold consultations in the EEA Joint Committee on any point of relevance to the Agreement giving rise to a difficulty and raised by one of them.

3.   The EEA Joint Committee shall by decision adopt its rules of procedure.

Article 93

1.   The EEA Joint Committee shall consist of representatives of the Contracting Parties.

2.   The EEA Joint Committee shall take decisions by agreement between the Community, on the one hand, and the EFTA States speaking with one voice, on the other.

Article 94

1.   The office of President of the EEA Joint Committee shall be held alternately, for a period of six months, by the representative of the Community, i.e. the EC Commission, and the representative of one of the EFTA States.

2.   In order to fulfil its functions, the EEA Joint Committee shall meet, in principle, at least once a month. It shall also meet on the initiative of its President or at the request of one of the Contracting Parties in accordance with its rules of procedure.

3.   The EEA Joint Committee may decide to establish any subcommittee or working group to assist it in carrying out its tasks. The EEA Joint Committee shall in its rules of procedure lay down the composition and mode of operation of such subcommittees and working groups. Their tasks shall be determined by the EEA Joint Committee in each individual case.

4.   The EEA Joint Committee shall issue an annual report on the functioning and the development of this Agreement.

Section 3

Parliamentary cooperation

Article 95

1.   An EEA Joint Parliamentary Committee is hereby established. It shall be composed of equal numbers of, on the one hand, members of the European Parliament and, on the other, members of Parliaments of the EFTA States. The total number of members of the Committee is laid down in the Statute in Protocol 36.

2.   The EEA Joint Parliamentary Committee shall alternately hold sessions in the Community and in an EFTA State in accordance with the provisions laid down in Protocol 36.

3.   The EEA Joint Parliamentary Committee shall contribute, through dialogue and debate, to a better understanding between the Community and the EFTA States in the fields covered by this Agreement.

4.   The EEA Joint Parliamentary Committee may express its views in the form of reports or resolutions, as appropriate. It shall, in particular, examine the annual report of the EEA Joint Committee, issued in accordance with Article 94(4), on the functioning and the development of this Agreement.

5.   The President of the EEA Council may appear before the EEA Joint Parliamentary Committee in order to be heard by it.

6.   The EEA Joint Parliamentary Committee shall adopt its rules of procedure.

Section 4

Cooperation between economic and social partners

Article 96

1.   Members of the Economic and Social Committee and other bodies representing the social partners in the Community and the corresponding bodies in the EFTA States shall work to strengthen contacts between them and to cooperate in an organized and regular manner in order to enhance the awareness of the economic and social aspects of the growing interdependence of the economies of the Contracting Parties and of their interests within the context of the EEA.

2.   To this end, an EEA Consultative Committee is hereby established. It shall be composed of equal numbers of, on the one hand, members of the Economic and Social Committee of the Community and, on the other, members of the EFTA Consultative Committee. The EEA Consultative Committee may express its views in the form of reports or resolutions, as appropriate.

3.   The EEA Consultative Committee shall adopt its rules of procedure.

CHAPTER 2

THE DECISION-MAKING PROCEDURE

Article 97

This Agreement does not prejudge the right for each Contracting Party to amend, without prejudice to the principle of non-discrimination and after having informed the other Contracting Parties, its internal legislation in the areas covered by this Agreement:

if the EEA Joint Committee concludes that the legislation as amended does not affect the good functioning of this Agreement; or

if the procedures referred to in Article 98 have been completed.

Article 98

The Annexes to this Agreement and Protocols 1 to 7, 9 to 11, 19 to 27, 30 to 32, 37, 39, 41 and 47, as appropriate, may be amended by a decision of the EEA Joint Committee in accordance with Articles 93(2), 99, 100, 102 and 103.

Article 99

1.   As soon as new legislation is being drawn up by the EC Commission in a field which is governed by this Agreement, the EC Commission shall informally seek advice from experts of the EFTA States in the same way as it seeks advice from experts of the EC Member States for the elaboration of its proposals.

2.   When transmitting its proposal to the Council of the European Communities, the EC Commission shall transmit copies thereof to the EFTA States.

At the request of one of the Contracting Parties, a preliminary exchange of views takes place in the EEA Joint Committee.

3.   During the phase preceding the decision of the Council of the European Communities, in a continuous information and consultation process, the Contracting Parties consult each other again in the EEA Joint Committee at the significant moments at the request of one of them.

4.   The Contracting Parties shall cooperate in good faith during the information and consultation phase with a view to facilitating, at the end of the process, the decision-taking in the EEA Joint Committee.

Article 100

The EC Commission shall ensure experts of the EFTA States as wide a participation as possible according to the areas concerned, in the preparatory stage of draft measures to be submitted subsequently to the committees which assist the EC Commission in the exercise of its executive powers. In this regard, when drawing up draft measures the EC Commission shall refer to experts of the EFTA States on the same basis as it refers to experts of the EC Member States.

In the cases where the Council of the European Communities is seized in accordance with the procedure applicable to the type of committee involved, the EC Commission shall transmit to the Council of the European Communities the views of the experts of the EFTA States.

Article 101

1.   In respect of committees which are covered neither by Article 81 nor by Article 100 experts from EFTA States shall be associated with the work when this is called for by the good functioning of this Agreement,

These committees are listed in Protocol 37. The modalities of such an association are set out in the relevant sectoral Protocols and Annexes dealing with the matter concerned.

2.   If it appears to the Contracting Parties that such an association should be extended to other committees which present similar characteristics, the EEA Joint Committee may amend Protocol 37.

Article 102

1.   In order to guarantee the legal security and the homogeneity of the EEA, the EEA Joint Committee shall take a decision concerning an amendment of an Annex to this Agreement as closely as possible to the adoption by the Community of the corresponding new Community legislation with a view to permitting a simultaneous application of the latter as well as of the amendments of the Annexes to the Agreement. To this end, the Community shall, whenever adopting a legislative act on an issue which is governed by this Agreement, as soon as possible inform the other Contracting Parties in the EEA Joint Committee.

2.   The part of an Annex to this Agreement which would be directly affected by the new legislation is assessed in the EEA Joint Committee.

3.   The Contracting Parties shall make all efforts to arrive at an agreement on matters relevant to this Agreement.

The EEA Joint Committee shall, in particular, make every effort to find a mutually acceptable solution where a serious problem arises in any area which, in the EFTA States, falls within the competence of the legislator.

4.   If, notwithstanding the application of the preceding paragraph, an agreement on an amendment of an Annex to this Agreement cannot be reached, the EEA Joint Committee shall examine all further possibilities to maintain the good functioning of this Agreement and take any decision necessary to this effect, including the possibility to take notice of the equivalence of legislation. Such a decision shall be taken at the latest at the expiry of a period of six months from the date of referral to the EEA Joint Committee or, if that date is later, on the date of entry into force of the corresponding Community legislation.

5.   If, at the end of the time-limit set out in paragraph 4, the EEA Joint Committee has not taken a decision on an amendment of an Annex to this Agreement, the affected part thereof, as determined in accordance with paragraph 2, is regarded as provisionally suspended, subject to a decision to the contrary by the EEA Joint Committee. Such a suspension shall take effect six months after the end of the period referred to in paragraph 4, but in no event earlier than the date on which the corresponding EC act is implemented in the Community. The EEA Joint Committee shall pursue its efforts to agree on a mutually acceptable solution in order for the suspension to be terminated as soon as possible.

6.   The practical consequences of the suspension referred to in paragraph 5 shall be discussed in the EEA Joint Committee. The rights and obligations which individuals and economic operators have already acquired under this Agreement shall remain. The Contracting Parties shall, as appropriate, decide on the adjustments necessary due to the suspension.

Article 103

1.   If a decision of the EEA Joint Committee can be binding on a Contracting Party only after the fulfilment of constitutional requirements, the decision shall, if a date is contained therein, enter into force on that date, provided that the Contracting Party concerned has notified the other Contracting Parties by that date that the constitutional requirements have been fulfilled.

In the absence of such a notification by that date, the decision shall enter into force on the first day of the second month following the last notification.

2.   If upon the expiry of a period of six months after the decision of the EEA Joint Committee such a notification has not taken place, the decision of the EEA Joint Committee shall be applied provisionally pending the fulfilment of the constitutional requirements unless a Contracting Party notifies that such a provisional application cannot take place. In the latter case, or if a Contracting Party notifies the non-ratification of a decision of the EEA Joint Committee, the suspension provided for in Article 102(5) shall take effect one month after such a notification but in no event earlier than the date on which the corresponding EC act is implemented in the Community.

Article 104

Decisions taken by the EEA Joint Committee in the cases provided for in this Agreement shall, unless otherwise provided for therein, upon their entry into force be binding on the Contracting Parties which shall take the necessary steps to ensure their implementation and application.

CHAPTER 3

HOMOGENEITY, SURVEILLANCE PROCEDURE AND SETTLEMENT OF DISPUTES

Section 1

Homogeneity

Article 105

1.   In order to achieve the objective of the Contracting Parties to arrive at as uniform an interpretation as possible of the provisions of the Agreement and those provisions of Community legislation which are substantially reproduced in the Agreement, the EEA Joint Committee shall act in accordance with this Article.

2.   The EEA Joint Committee shall keep under constant review the development of the case-law of the Court of Justice of the European Communities and the EFTA Court. To this end judgments of these Courts shall be transmitted to the EEA Joint Committee which shall act so as to preserve the homogeneous interpretation of the Agreement.

3.   If the EEA Joint Committee within two months after a difference in the case-law of the two Courts has been brought before it, has not succeeded to preserve the homogeneous interpretation of the Agreement, the procedures laid down in Article 111 may be applied.

Article 106

In order to ensure as uniform an interpretation as possible of this Agreement, in full deference to the independence of courts, a system of exchange of information concerning judgments by the EFTA Court, the Court of Justice of the European Communities and the Court of First Instance of the European Communities and the Courts of last instance of the EFTA States shall be set up by the EEA Joint Committee. This system shall comprise:

(a)

transmission to the Registrar of the Court of Justice of the European Communities of judgments delivered by such courts on the interpretation and application of, on the one hand, this Agreement or, on the other hand, the Treaty establishing the European Economic Community and the Treaty establishing the European Coal and Steel Community, as amended or supplemented, as well as the acts adopted in pursuance thereof in so far as they concern provisions which are identical in substance to those of this Agreement;

(b)

classification of these judgments by the Registrar of the Court of Justice of the European Communities including, as far as necessary, the drawing up and publication of translations and abstracts;

(c)

communications by the Registrar of the Court of Justice of the European Communities of the relevant documents to the competent national authorities, to be designated by each Contracting Party.

Article 107

Provisions on the possibility for an EFTA State to allow a court or tribunal to ask the Court of Justice of the European Communities to decide on the interpretation of an EEA rule are laid down in Protocol 34.

Section 2

Surveillance procedure

Article 108

1.   The EFTA States shall establish an independent surveillance authority (EFTA Surveillance Authority) as well as procedures similar to those existing in the Community including procedures for ensuring the fulfilment of obligations under this Agreement and for control of the legality of acts of the EFTA Surveillance Authority regarding competition.

2.   The EFTA States shall establish a court of justice (EFTA Court).

The EFTA Court shall, in accordance with a separate agreement between the EFTA States, with regard to the application of this Agreement be competent, in particular, for:

(a)

actions concerning the surveillance procedure regarding the EFTA States;

(b)

appeals concerning decisions in the field of competition taken by the EFTA Surveillance Authority;

(c)

the settlement of disputes between two or more EFTA States.

Article 109

1.   The fulfilment of the obligations under this Agreement shall be monitored by, on the one hand, the EFTA Surveillance Authority and, on the other, the EC Commission acting in conformity with the Treaty establishing the European Economic Community, the Treaty establishing the European Coal and Steel Community and this Agreement.

2.   In order to ensure a uniform surveillance throughout the EEA, the EFTA Surveillance Authority and the EC Commission shall cooperate, exchange information and consult each other on surveillance policy issues and individual cases.

3.   The EC Commission and the EFTA Surveillance Authority shall receive any complaints concerning the application of this Agreement. They shall inform each other of complaints received.

4.   Each of these bodies shall examine all complaints falling within its competence and shall pass to the other body any complaints which fall within the competence of that body.

5.   In case of disagreement between these two bodies with regard to the action to be taken in relation to a complaint or with regard to the result of the examination, either of the bodies may refer the matter to the EEA Joint Committee which shall deal with it in accordance with Article 111.

Article 110

Decisions under this Agreement by the EFTA Surveillance Authority and the EC Commission which impose a pecuniary obligation on persons other than States, shall be enforceable. The same shall apply to such judgments under this Agreement by the Court of Justice of the European Communities, the Court of First Instance of the European Communities and the EFTA Court.

Enforcement shall be governed by the rules of civil procedure in force in the State in the territory of which it is carried out. The order for its enforcement shall be appended to the decision, without other formality than verification of the authenticity of the decision, by the authority which each Contracting Party shall designate for this purpose and shall make known to the other Contracting Parties, the EFTA Surveillance Authority, the EC Commission, the Court of Justice of the European Communities, the Court of First Instance of the European Communities and the EFTA Court.

When these formalities have been completed on application by the party concerned, the latter may proceed to enforcement, in accordance with the law of the State in the territory of which enforcement is to be carried out, by bringing the matter directly before the competent authority.

Enforcement may be suspended only by a decision of the Court of Justice of the European Communities, as far as decisions by the EC Commission, the Court of First Instance of the European Communities or the Court of Justice of the European Communities are concerned, or by a decision of the EFTA Court as far as decisions by the EFTA Surveillance Authority or the EFTA Court are concerned. However, the courts of the States concerned shall have jurisdiction over complaints that enforcement is being carried out in an irregular manner.

Section 3

Settlement of disputes

Article 111

1.   The Community or an EFTA State may bring a matter under dispute which concerns the interpretation or application of this Agreement before the EEA Joint Committee in accordance with the following provisions.

2.   The EEA Joint Committee may settle the dispute. It shall be provided with all information which might be of use in making possible an in-depth examination of the situation, with a view to finding an acceptable solution. To this end, the EEA Joint Committee shall examine all possibilities to maintain the good functioning of the Agreement.

3.   If a dispute concerns the interpretation of provisions of this Agreement, which are identical in substance to corresponding rules of the Treaty establishing the European Economic Community and the Treaty establishing the European Coal and Steel Community and to acts adopted in application of these two Treaties and if the dispute has not been settled within three months after it has been brought before the EEA Joint Committee, the Contracting Parties to the dispute may agree to request the Court of Justice of the European Communities to give a ruling on the interpretation of the relevant rules.

If the EEA Joint Committee in such a dispute has not reached an agreement on a solution within six months from the date on which this procedure was initiated or if, by then, the Contracting Parties to the dispute have not decided to ask for a ruling by the Court of Justice of the European Communities, a Contracting Party may, in order to remedy possible imbalances,

either take a safeguard measure in accordance with Article 112(2) and following the procedure of Article 113;

or apply Article 102 mutatis mutandis.

4.   If a dispute concerns the scope or duration of safeguard measures taken in accordance with Article 111(3) or Article 112, or the proportionality of rebalancing measures taken in accordance with Article 114, and if the EEA Joint Committee after three months from the date when the matter has been brought before it has not succeeded to resolve the dispute, any Contracting Party may refer the dispute to arbitration under the procedures laid down in Protocol 33. No question of interpretation of the provisions of this Agreement referred to in paragraph 3 may be dealt with in such procedures. The arbitration award shall be binding on the parties to the dispute.

CHAPTER 4

SAFEGUARD MEASURES

Article 112

1.   If serious economic, societal or environmental difficulties of a sectorial or regional nature liable to persist are arising, a Contracting Party may unilaterally take appropriate measures under the conditions and procedures laid down in Article 113.

2.   Such safeguard measures shall be restricted with regard to their scope and duration to what is strictly necessary in order to remedy the situation. Priority shall be given to such measures as will least disturb the functioning of this Agreement.

3.   The safeguard measures shall apply with regard to all Contracting Parties.

Article 113

1.   A Contracting Party which is considering taking safeguard measures under Article 112 shall, without delay, notify the other Contracting Parties through the EEA Joint Committee and shall provide all relevant information.

2.   The Contracting Parties shall immediately enter into consultations in the EEA Joint Committee with a view to finding a commonly acceptable solution.

3.   The Contracting Party concerned may not take safeguard measures until one month has elapsed after the date of notification under paragraph 1, unless the consultation procedure under paragraph 2 has been concluded before the expiration of the stated time-limit. When exceptional circumstances requiring immediate action exclude prior examination, the Contracting Party concerned may apply forthwith the protective measures strictly necessary to remedy the situation.

For the Community, the safeguard measures shall be taken by the EC Commission.

4.   The Contracting Party concerned shall, without delay, notify the measures taken to the EEA Joint Committee and shall provide all relevant information.

5.   The safeguard measures taken shall be the subject of consultations in the EEA Joint Committee every three months from the date of their adoption with a view to their abolition before the date of expiry envisaged, or to the limitation of their scope of application.

Each Contracting Party may at any time request the EEA Joint Committee to review such measures.

Article 114

1.   If a safeguard measure taken by a Contracting Party creates an imbalance between the rights and obligations under this Agreement, any other Contracting Party may towards that Contracting Party take such proportionate rebalancing measures as are strictly necessary to remedy the imbalance. Priority shall be given to such measures as will least disturb the functioning of the EEA.

2.   The procedure under Article 113 shall apply.

PART VIII

FINANCIAL MECHANISM

Article 115

With a view to promoting a continuous and balanced strengthening of trade and economic relations between the Contracting Parties, as provided for in Article 1, the Contracting Parties agree on the need to reduce the economic and social disparities between their regions. They note in this regard the relevant provisions set out elsewhere in this Agreement and its related Protocols, including certain of the arrangements regarding agriculture and fisheries.

Article 116

A Financial Mechanism shall be established by the EFTA States to contribute, in the context of the EEA and in addition to the efforts already deployed by the Community in this regard, to the objectives laid down in Article 115.

Article 117

Provisions governing the Financial Mechanism are set out in Protocol 38.

PART IX

GENERAL AND FINAL PROVISIONS

Article 118

1.   Where a Contracting Party considers that it would be useful in the interests of all the Contracting Parties to develop the relations established by this Agreement by extending them to fields not covered thereby, it shall submit a reasoned request to the other Contracting Parties within the EEA Council. The latter may instruct the EEA Joint Committee to examine all the aspects of this request and to issue a report.

The EEA Council may, where appropriate, take the political decisions with a view to opening negotiations between the Contracting Parties.

2.   The agreements resulting from the negotiations referred to in paragraph 1 will be subject to ratification or approval by the Contracting Parties in accordance with their own procedures.

Article 119

The Annexes and the acts referred to therein as adapted for the purposes of this Agreement as well as the Protocols shall form an integral part of this Agreement.

Article 120

Unless otherwise provided in this Agreement and in particular in Protocols 41, 43 and 44, the application of the provisions of this Agreement shall prevail over provisions in existing bilateral or multilateral agreements binding the European Economic Community, on the one hand, and one or more EFTA States, on the other, to the extent that the same subject matter is governed by this Agreement.

Article 121

The provisions of this Agreement shall not preclude cooperation:

(a)

within the framework of the Nordic cooperation to the extent that such cooperation does not impair the good functioning of this Agreement;

(b)

within the framework of the regional union between Switzerland and Liechtenstein to the extent that the objectives of this union are not attained by the application of this Agreement and the good functioning of this Agreement is not impaired;

(c)

within the framework of cooperation between Austria and Italy concerning Tyrol, Vorarlberg and Trentino-South Tyrol/Alto Adige, to the extent that such cooperation does not impair the good functioning of this Agreement.

Article 122

The representatives, delegates and experts of the Contracting Parties, as well as officials and other servants acting under this Agreement shall be required, even after their duties have ceased, not to disclose information of the kind covered by the obligation of professional secrecy, in particular information about undertakings, their business relations or their cost components.

Article 123

Nothing in this Agreement shall prevent a Contracting Party from taking any measures:

(a)

which it considers necessary to prevent the disclosure of information contrary to its essential security interests;

(b)

which relate to the production of, or trade in, arms, munitions and war materials or other products indispensable for defence purposes or to research, development or production indispensable for defence purposes, provided that such measures do not impair the conditions of competition in respect of products not intended for specifically military purposes;

(c)

which it considers essential to its own security in the event of serious internal disturbances affecting the maintenance of law and order, in time of war or serious international tension constituting threat of war or in order to carry out obligations it has accepted for the purpose of maintaining peace and international security.

Article 124

The Contracting Parties shall accord nationals of EC Member States and EFTA States the same treatment as their own nationals as regards participation In the capital of companies or firms within the meaning of Article 34, without prejudice to the application of the other provisions of this Agreement.

Article 125

This Agreement shall in no way prejudice the rules of the Contracting Parties governing the system of property ownership.

Article 126

1.   The Agreement shall apply to the territories to which the Treaty establishing the European Economic Community and the Treaty establishing the European Coal and Steel Community is applied and under the conditions laid down in those Treaties, and to the territories of the Republic of Austria, the Republic of Finland, the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway, the Kingdom of Sweden and the Swiss Confederation.

2.   Notwithstanding paragraph 1, this Agreement shall not apply to the Åland Islands. The Government of Finland may, however, give notice, by a declaration deposited when ratifying this Agreement with the Depositary, which shall transmit a certified copy thereof to the Contracting Parties, that the Agreement shall apply to those Islands under the same conditions as it applies to other parts of Finland subject to the following provisions:

(a)

The provisions of this Agreement shall not preclude the application of the provisions in force at any given time on the Åland Islands on:

(i)

restrictions on the right for natural persons who do not enjoy regional citizenship in Åland, and for legal persons, to acquire and hold real property on the Åland Islands without permission by the competent authorities of the Islands;

(ii)

restrictions on the right of establishment and the right to provide services by natural persons who do not enjoy regional citizenship in Åland, or by any legal person, without permission by the competent authorities of the Åland Islands.

(b)

The rights enjoyed by Ålanders in Finland shall not be affected by this Agreement.

(c)

The authorities of the Åland Islands shall apply the same treatment to all natural and legal persons of the Contracting Parties.

Article 127

Each Contracting Party may withdraw from this Agreement provided it gives at least 12 months' notice in writing to the other Contracting Parties.

Immediately after the notification of the intended withdrawal, the other Contracting Parties shall convene a diplomatic conference in order to envisage the necessary modifications to bring to the Agreement.

Article 128

1.   Any European State becoming a member of the Community shall, or becoming a member of EFTA may, apply to become a Party to this Agreement. It shall address its application to the EEA Council.

2.   The terms and conditions for such participation shall be the subject of an agreement between the Contracting Parties and the applicant State. That agreement shall be submitted for ratification or approval by all Contracting Parties in accordance with their own procedures.

Article 129

1.   This Agreement is drawn up in a single original in the Danish, Dutch, English, Finnish, French, German, Greek, Icelandic, Italian, Norwegian, Portuguese, Spanish and Swedish languages, each of these texts being equally authentic.

The texts of the acts referred to in the Annexes are equally authentic in Danish, Dutch, English, French, German, Greek, Italian, Portuguese and Spanish as published in the Official Journal of the European Communities and shall for the authentication thereof be drawn up in the Finnish, Icelandic, Norwegian and Swedish languages.

2.   This Agreement shall be ratified or approved by the Contracting Parties in accordance with their respective constitutional requirements.

It shall be deposited with the General Secretariat of the Council of the European Communities by which certified copies shall be transmitted to all other Contracting Parties.

The instruments of ratification or approval shall be deposited with the General Secretariat of the Council of the European Communities which shall notify all other Contracting Parties.

3.   This Agreement shall enter into force on 1 January 1993, provided that all Contracting Parties have deposited their instruments of ratification or approval before that date. After that date this Agreement shall enter into force on the first day of the second month following the last notification. The final date for such a notification shall be 30 June 1993. After that date the Contracting Parties shall convene a diplomatic conference to appreciate the situation.

En fe de lo cual, los plenipotenciarios abajo firmantes suscriben el presente acuerdo.

Til bekræftelse heraf har undertegnede befuldmægtigede underskrevet denne aftale.

Zu Urkund dessen haben die unterzeichneten Bevollmächtigten ihre Unterschriften unter dieses Abkommen gesetzt.

Εις πίστωση των ανωτέρω, οι υπογεγραμμένοι πληρεξούσιοι έθεσαν τις υπογραφές τους στην παρούσα συμφωνία.

In witness whereof the undersigned Plenipotentiaries have signed this Agreement.

En foi de quoi, les plénipotentiaires soussignés ont apposé leurs signatures au bas du présent accord.

þEssu til staðfestingar hafa undirritaðir fulltrúar, sem til þess hafa fullt umboð, undirritað samning þennan.

In fede di che, i plenipotenziari sottoscritti hanno apposto le loro firme in calce al presente accordo.

Ten blijke waarvan de ondergetekende gevolmachtigden hun handtekening onder deze Overeenkomst hebben gesteld.

Som bevitnelse på dette har de undertegnede befullmäktigade undertegnet denne avtal.

Em fé do que, os plenipotenciários abaixo assinados apuseram as suas assinaturas no final do presente acordo.

Tämän vakuudeksi alla mainitut täysivaltaiset edustajat ovat allekirjoittaneet tämän sopimuksen.

Till bestyrkande härav har undertecknade befullmäktigade ombud undertecknat detta avtal.

Hecho en Oporto, el dos de mayo de mil novecientos noventa y dos.

Udfærdiget i Porto, den anden maj nitten hundrede og tooghalvfems.

Geschehen zu Porto am zweiten Mai neunzehnhundertzweiundneunzig.

'Εγινε στο Πόρτο, στις δύο Μαΐου χίλια εννιακόσια ενενήντα δύο.

Done at Oporto on the second day of May in the year one thousand nine hundred and ninety-two.

Fait à Porto, le deux mai mil neuf cent quatre-vingt-douze.

Gjört í Oporto annan dag maímánaðar árið nítján hundruð níutíu og tvö.

Fatto a Porto, addì due maggio millenovecentonovantadue.

Gedaan te Oporto, de tweede mei negentienhonderd tweeënnegentig.

Gitt i Oporte på den annen dag i mai i året nittenhundre og nitti to.

Feito no Porto, em dois de Maio de mil novecentos e noventa e dois.

Tehty portossa toisena päivänä toukokuuta tuhat yhdeksänsataayhdeksänkymmentäkaksi.

Undertecknat i Oporto de 2 maj 1992.

Por el Consejo y la Comisión de las Comunidades Europeas

For Rådet og Kommissionen for De Europæiske Fællesskaber

Für den Rat und die Kommission der Europäischen Gemeinschaften

Για το Συμβούλιο και την Επιτροπή των Ευρωπαϊκών Κοινοτήτων

For the Council and the Commission of the European Communities

Pour le Conseil et la Commission des Communautés européennes

Per il Consiglio e la Commissione delle Comunità europee

Voor de Raad en de Commissie van de Europese Gemeenschappen

Pelo Conselho e pela Comissão das Comunidades Europeias

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Pour le royaume de Belgique

Voor het Koninkrijk België

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På Kongeriget Danmarks vegne

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Für die Bundesrepublik Deutschland

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Για την Ελληνική Δημοκρατία

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Por el Reino de España

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Pour la République française

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Thar cheann Na hÉireann

For Ireland

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Per la Repubblica italiana

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Pour le grand-duché de Luxembourg

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Voor het Koninkrijk der Nederlanden

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Pela República Portuguesa

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For the United Kingdom of Great Britain and Northern Ireland

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Für die Republik Österreich

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Suomen tasavallan puolesta

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Fyrir Lýðveldið Ísland

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Für das Fürstentum Liechtenstein

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For Kongeriket Norge

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För Konungariket Sverige

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Für die Schweizerische Eidgenossenschaft

Pour la Confédération suisse

Per la Confederazione svizzera

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PROTOCOLS

 

PROTOCOL 1

on horizontal adaptations

The provisions of the acts referred to in the Annexes to the Agreement shall be applicable in accordance with the Agreement and this Protocol, unless otherwise provided in the respective Annex. The specific adaptations necessary for individual acts are set out in the Annex where the act concerned is listed.

1.   INTRODUCTORY PARTS OF THE ACTS

The preambles of the acts referred to are not adapted for the purposes of the Agreement. They are relevant to the extent necessary for the proper interpretation and application, within the framework of the Agreement, of the provisions contained in such acts.

2.   PROVISIONS ON EC COMMITTEES

Procedures, institutional arrangements or other provisions concerning EC committees contained in the acts referred to are dealt with in Articles 81, 100 and 101 of the Agreement and in Protocol 31.

3.   PROVISIONS SETTING UP PROCEDURES FOR ADAPTING/AMENDING COMMUNITY ACTS

Where an act referred to provides for EC procedures on its adaptation, extension or amendment or for the development of new Community policies, initiatives or acts, the relevant decision-making procedures provided for in the Agreement shall apply.

4.   EXCHANGE OF INFORMATION AND NOTIFICATION PROCEDURES

(a)

Where an EC Member State is to submit information to the EC Commission, an EFTA State shall submit such information to the EFTA Surveillance Authority and to a Standing Committee of the EFTA States. The same shall apply when the transmission of information is to be carried out by the competent authorities. The EC Commission and the EFTA Surveillance Authority shall exchange information they have received from the EC Member States or from the EFTA States or from the competent authorities.

(b)

Where an EC Member State is to submit information to one or more other EC Member States, it shall also submit that information to the EC Commission which shall pass it on to the Standing Committee for distribution to the EFTA States.

An EFTA State shall submit corresponding information to one or more other EFTA States and to the Standing Committee which shall pass it on to the EC Commission for distribution to the EC Member States. The same shall apply when the information is to be submitted by the competent authorities.

(c)

In areas where, for reasons of urgency, rapid transfer of information is called for, appropriate sectoral solutions providing for direct exchange of information shall apply.

(d)

Functions of the EC Commission in the context of procedures for verification or approval, information, notification or consultation and similar matters shall for the EFTA States be carried out according to procedures established among them. This is without prejudice to paragraphs 2, 3 and 7. The EC Commission and the EFTA Surveillance Authority or the Standing Committee, as the case may be, shall exchange all information regarding these matters. Any issue arising in this context may be referred to the EEA Joint Committee.

5.   REVIEW AND REPORTING PROCEDURES

Where, according to an act referred to, the EC Commission or another EC body is to prepare a report or an assessment or the like, the EFTA Surveillance Authority or the Standing Committee, as the case may be, shall, unless otherwise agreed, concurrently prepare, as appropriate, a corresponding report or assessment or the like, with regard to the EFTA States. The EC Commission and the EFTA Surveillance Authority or the Standing Committee, as the case may be, shall consult each other and exchange information during the preparation of their respective reports, copies of which shall be sent to the EEA Joint Committee.

6.   PUBLICATION OF INFORMATION

(a)

Where, according to an act referred to, an EC Member State is to publish certain information on facts, procedures and the like, also the EFTA States shall, under the Agreement, publish the relevant information in a corresponding manner.

(b)

Where, according to an act referred to, facts, procedures, reports and the like are to be published in the Official Journal of the European Communities, the corresponding information regarding the EFTA States shall be published in a separate EEA section (1) thereof.

7.   RIGHTS AND OBLIGATIONS

Rights conferred and obligations imposed upon the EC Member States or their public entities, undertakings or individuals in relation to each other, shall be understood to be conferred or imposed upon Contracting Parties, the latter also being understood, as the case may be, as their competent authorities, public entities, undertakings or individuals.

8.   REFERENCES TO TERRITORIES

Whenever the acts referred to contain references to the territory of the ‘Community’ or of the ‘common market’ the references shall for the purposes of the Agreement be understood to be references to the territories of the Contracting Parties as defined in Article 126 of the Agreement.

9.   REFERENCES TO NATIONALS OF EC MEMBER STATES

Whenever the acts referred to contain references to nationals of EC Member States, the references shall for the purposes of the Agreement be understood to be references also to nationals of EFTA States.

10.   REFERENCES TO LANGUAGES

Where an act referred to confers upon the EC Member States or their public entities, undertakings or individuals rights or imposes obligations regarding the use of any of the official languages of the European Communities, the corresponding rights and obligations regarding the use of any of the official languages of all Contracting Parties shall be understood to be conferred or imposed upon Contracting Parties, their competent authorities, public entities, undertakings or individuals.

11.   ENTRY INTO FORCE AND IMPLEMENTATION OF ACTS

Provisions on the entry into force or implementation of the acts referred to in the Annexes to the Agreement are not relevant for the purposes of the Agreement. The time limits and dates for the EFTA States for bringing into force and implementing acts referred to follow from Article 129(3) of the Agreement, as well as from provisions on transitional arrangements.

12.   ADDRESSEES OF THE COMMUNITY ACTS

Provisions indicating that a Community act is addressed to the Member States of the Community are not relevant for the purposes of the Agreement.


(1)  The table of contents of the EEA section would also contain references to where the information in question concerning the EC and its Member States could be found.

PROTOCOL 2

on products excluded from the scope of the Agreement in accordance with Article 8(3)(a)

The following products falling within HS, Chapters 25 to 97, are excluded from the scope of the Agreement:

HS heading No

Product description

35.01

Casein, casemates and other casein derivatives;

Casein glues

35.02

Albumins, albuminates and other albumin derivatives:

10

– Egg albumin:

ex 10

– – Other than unfit, or to be rendered unfit, for human consumption

90

– Other:

ex 90

– – Milk albumin (lactalbumin), other than unfit, or to be rendered unfit, for human consumption

35.05

Dextrins and other modified starches (for example, pregelatinized or esterified starches); glues based on starches, or on dextrins or other modified starches:

10

– Dextrins and other modified starches:

ex 10

– – Starches, esterified or etherified

PROTOCOL 3

concerning products referred to in Article 8(3)(b) of the Agreement

CHAPTER I

GENERAL PROVISION

Article 1

Application of the EEA provisions

Subject to the provisions of this Protocol and unless otherwise specified in the Agreement, the provisions of the Agreement shall apply to products listed in Tables I and II.

CHAPTER II

PRICE COMPENSATION ARRANGEMENTS

Article 2

General principle of price compensation

1.   In order to take account of differences in the cost of the agricultural raw materials used in the manufacture of the products specified in Table I, the Agreement does not preclude the application of price compensation measures to these products; that is the levying of variable components upon import and the granting of refunds upon export.

2.   If a Contracting Party applies internal measures which reduce the price of raw materials to processing industries, these measures shall be taken into account in the calculation of price compensation amounts.

Article 3

New calculation system

1.   Subject to the conditions and specific provisions set out in Articles 4 to 9, the price compensation shall be calculated on the basis of the amounts of raw materials actually used in the manufacture of the product and on the basis of jointly confirmed reference prices.

2.   Unless otherwise provided in Article 1 of Appendix 1, the Contracting Parties shall not levy customs duties or other fixed amounts on imported goods which are subject to the system referred to in paragraph 1.

3.   The list of raw materials for which each Contracting Party may apply price compensation is established in Appendix 2. The procedure for the amendment of the list is established in Appendix 3.

Article 4

Declaration of raw materials

1.   Whenever, in connection with the importation, a declaration of raw materials used in the production process is submitted to the authorities of the importing State, these authorities shall, unless they have reasonable doubt as to the accuracy of the information in the declaration, calculate the variable component in proportion to the net weight of the product presented for clearance and the amounts of raw materials indicated in the declaration.

2.   Rules concerning the declarations to be used and procedures for their submission are established in Appendix 4.

Article 5

Verification of declarations

1.   The Contracting Parties shall assist each other in verifying the accuracy of the declarations.

2.   The details of the verification procedure of the declarations are established in Appendix 5.

Article 6

Reference prices

1.   Contracting Parties shall notify to the EEA Joint Committee the prices of raw materials for which price compensation measures are applied. The prices which are notified shall reflect the actual price situation in the territory of the Contracting Party. They shall be the prices normally paid at the wholesale or the manufacturing stage by processing industries. If an agricultural raw material is available to the processing industry, or to a part of it, at a price lower than the one otherwise ruling on the domestic market, the notification shall be adjusted accordingly.

2.   The EEA Joint Committee shall on the basis of the notifications periodically confirm the reference prices to be used in the calculation of price compensation amounts.

3.   Details of the reference prices to be used, the notification system and the procedures for the confirmation of the reference prices are established in Appendix 6.

Article 7

Coefficients

1.   When converting amounts of raw materials concerned into quantities of raw materials for which there is a reference price confirmed, the Contracting Parties shall use agreed coefficients.

2.   A list of the coefficients to be applied is provided for in Appendix 7.

Article 8

Difference between the reference prices

For each of the raw materials concerned, the price compensation amount shall not exceed the difference between the domestic reference price and the lowest of the reference prices in any of the Contracting Parties.

Article 9

Limit to price compensation amounts

A Contracting Party shall not levy on a product coming from another Contracting Party variable price compensation components higher than the customs duty or fixed amount which it applied on 1 January 1992 to the product concerned when coming from the Contracting Party in question. This limit also applies when the customs duty or fixed amount was administered through a tariff quota, but not in cases where, in addition to the customs duty or fixed amount, the product concerned was subject to a price compensation measure on 1 January 1992.

CHAPTER III

OTHER PROVISIONS

Article 10

Non-application of Chapter II to Table II products

1.   The provisions of Chapter II shall not apply to products listed in Table II. In particular, with respect to these products, the Contracting Parties may not levy customs duties on imports or charges having equivalent effect, including variable components, or grant refunds upon export.

2.   As regards the products referred to in paragraph 1, special arrangements concerning customs duties on imports and other fixed amounts are set out in Article 2 of Appendix 1.

Article 11

Application of Protocol No 2

In so far as trade between an EFTA State and the Community in a product covered by the respective Table of Protocol No 2 of the Free Trade Agreement is concerned and without prejudice to the provision of Article 6 of Appendix 1 to this Protocol, the provisions of the Protocol No 2 and Protocol No 3 of the respective Free Trade Agreement as well as all other relevant provisions of the Free Trade Agreement shall apply:

if the product is listed in Table I but the conditions for the application of the system set out in Articles 3 to 9 are not fulfilled, or

if the product falls within HS Chapters 1 to 24 but is not listed in Table I or II, or

if the product is listed in Protocol 2 of this Agreement.

Article 12

Transparency

1.   The Contracting Parties shall make available to the EEA Joint Committee as soon as possible and at the latest two weeks after their entry into force, full details of any price compensation measures applied on the basis of the system set out in Articles 3 to 9. Any Contracting Party may request an examination of such measures in the light of the foregoing provisions within the EEA Joint Committee.

2.   In case a Contracting Party applies, autonomously or on contractual basis, to products not listed in Table I or to products listed in that Table but coming from third countries, a system similar to that set out in Articles 3 to 9, it shall inform the EEA Joint Committee.

3.   The Contracting Parties shall also inform the EEA Joint Committee of internal measures which reduce the price of raw materials to processing industries.

4.   Any Contracting Party may request a discussion in the EEA Joint Committee on the systems and measures referred to in paragraphs 2 and 3.

Article 13

Country-specific arrangements

Articles 4 to 6 of Appendix 1 contain specific arrangements concerning Austria, Finland, Iceland and Norway.

Article 14

Reviews

The Contracting Parties shall review at two-yearly intervals the development of their trade in processed agricultural products. A first review shall be held before the end of 1993. In the light of these reviews the Contracting Parties will decide on a possible extension of the product coverage of the Protocol as well as on a possible abolition of the remaining customs duties and other charges referred to in Articles 1 and 2 of Appendix 1.

APPENDIX 1

Article 1

1.   The Contracting Parties may, in addition to variable price compensation components, apply customs duties or other fixed amounts not exceeding 10% on the following products:

20.07

Jams, fruit jellies, marmalades, fruit or nut purée and fruit or nut pastes, being cooked preparations, whether or not containing added sugar or other sweetening matter

2.   The Contracting Parties shall abolish progressively in accordance with the following timetable customs duties and other fixed amounts on the products listed below:

(a)

on 1 January 1993 each duty shall be reduced to five-sixths of the basic duty;

(b)

five further reductions of one-sixth each shall be made on 1 January 1994, 1 January 1995, 1 January 1996, 1 January 1997 and 1 January 1998.

13.02

Vegetable saps and extracts; pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners, whether or not modified, derived from vegetable products:

20

– Pectic substances, pectinates and pectates:

ex 20

– – Containing 5% or more by weight of added sugar

15.17

Margarine; edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this Chapter, other than edible fats or oils or their fractions of heading No 15.16:

10

– Margarine, excluding liquid margarine:

ex 10

– – Containing more than 10% but not more than 15% by weight of milkfats

90

– Other:

ex 90

– – Containing more than 10% but not more than 15% by weight of milkfats

21.06

Food preparations not elsewhere specified or included:

ex 21.06

– Other than flavoured or coloured sugar syrups:

– – Containing more than 15% by weight of milkfat

3.   The Contracting Parties shall reduce progressively in accordance with the following timetable customs duties and other fixed amounts on the product indicated below:

(a)

on 1 January 1993 each duty shall be reduced to 90% of the basic duty;

(b)

four further reductions of 10% each shall be made on 1 January 1994, 1 January 1995, 1 January 1996 and 1 January 1997.

17.02

Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel:

50

– Chemically pure fructose.

Article 2

1.   The Contracting Parties shall abolish progressively in accordance with the following timetable customs duties on imports and other fixed amounts on the products listed below:

(a)

on 1 January 1993 each duty shall be reduced to five-sixths of the basic duty;

(b)

five further reductions of one-sixth each shall be made on 1 January 1994, 1 January 1995, 1 January 1996, 1 January 1997 and 1 January 1998.

13.02

Vegetable saps and extracts; pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners, whether or not modified, derived from vegetable products:

20

– Pectic substances, pectinates and pectates:

ex 20

– Containing less than 5% by weight of added sugar

2.   The Contracting Parties shall reduce progressively in accordance with the following timetable customs duties on imports and other fixed amounts on the product indicated below:

(a)

on 1 January 1993 each duty shall be reduced to 90% of the basic duty;

(b)

four further reductions of 10% each shall be made on 1 January 1994, 1 January 1995, 1 January 1996 and 1 January 1997.

17.02

Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel:

90

– Other, including invert sugar;

ex 90

– – Chemically pure maltose.

Article 3

1.   The basic duties to which the successive reductions provided for in Articles 1 and 2 are to be applied shall, for each product, be the duties actually applied by a Contracting Party on 1 January 1992 to products coming from the other Contracting Parties. If, after 1 January 1992, any tariff reductions resulting from the multilateral trade negotiations of the Uruguay Round become applicable, such reduced duties shall be used as the basic duties.

2.   The reduced duties shall be applied by rounding down to the first decimal place by deleting the second decimal.

Article 4

1.   With regard to Finland, the provisions of Article 9 of the Protocol shall not apply to the products falling within HS heading Nos 15.17 and 20.07.

2.   With regard to Norway, the provisions of Article 9 of the Protocol shall not apply to the products falling within HS heading Nos 20.07, 20.08 and 21.04.

Article 5

1.   With regard to Iceland, the provisions of the Protocol shall not apply to the following products:

21.05

Ice cream and other edible ice, whether or not containing cocoa

21.06

Food preparations not elsewhere specified or included:

90

– Other:

ex 90

– – Preparations consisting mainly of fat and water, containing more than 15% by weight of butter or other milkfat

This temporary arrangement shall be taken up for a review by the Contracting Parties before the end of 1998.

2.   With regard to Iceland the limitation, foreseen in Article 9 of the Protocol, of price compensation amounts levied on imports shall not apply to Iceland for products falling within HS heading Nos 04.03, 15.17, 18.06, 19.01, 19.02, 19.05, 20.07, 21.03 and 21.04.

However, the amounts of import charges levied at the border shall not in any case exceed the level applied by Iceland in 1991 to imports coming from any Contracting Party.

Article 6

1.   With regard to Austria, Article 16 of the Agreement shall be applicable to products falling within HS heading No 22.08 at the latest from 1 January 1996. The licensing system applied by Austria to these products shall, however, be liberalized and licences granted automatically from 1 January 1993.

Austria shall progressively eliminate during the period 1 January 1993 to 1 January 1996, in accordance with the following timetable, the customs duties levied at the border on spirituous beverages and unde-natured ethyl alcohol of an alcoholic strength by volume of less than 80% vol., falling within HS heading No 22.08:

(a)

on 1 January 1993 the customs duty actually applied on 1 January 1991 shall be reduced by 15%,

(b)

a further reduction of 15% shall be made on 1 January 1994,

(c)

a further reduction of 30% shall be made on 1 January 1995, and

(d)

a final reduction of 40% shall be made on 1 January 1996.

The reduced duties shall be applied by rounding down to the first decimal place by deleting the second decimal.

Notwithstanding the above, Austria will, taking into account the tariff concessions granted to the European Community in the trade arrangement for certain agricultural products originating in the Community, abolish as from 1 January 1993 import duties on the following products:

2208

ex 30

Irish whiskey

40

Rum and tafia

ex 90

Irish cream liqueurs and ouzo

2.   As regards other duties and taxes imposed on spirituous beverages falling within HS heading No 22.08 Austria will comply with the provisions of Article 14 of the Agreement.

3.

(a)

Austria shall apply the provisions of the Agreement to the following products at the latest from 1 January 1997:

3505

Dextrins and other modified starches (for example, pregelatinized or esterified starches); glues based on starches, or on dextrins or other modified starches:

 

10

– Dextrins and other modified starches:

 

ex 10

– – Other than starches, esterified or etherified

 

20

– Glues

3809

Finishing agents, dye carriers to accelerate the dyeing or fixing of dyestuffs and other products and preparations (for example, dressings and mordants), of a kind used in the textile, paper, leather or like industries, not elsewhere specified or included:

 

10

– With a basis of amylaceous substances

 

 

– – Other:

 

ex 91

– – Of a kind used in the textile industry:

 

 

– Containing starch or products derived from starch

 

ex 92

– – Of a kind used in the paper industry:

 

 

– Containing starch or products derived from starch

 

ex 99

– – Other:

 

 

– Containing starch or products derived from starch

3823

Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included; residual products of the chemical or allied industries, not elsewhere specified or included:

 

10

– Prepared binders for foundry moulds or cores:

 

ex 10

– – Based on starch or dextrin starch

 

90

– Other:

 

ex 90

– – With a total content of sugar, starch, products derived from starch or goods of heading Nos 0401 to 0404 of 30% by weight or more

(b)

As long as Austria does not apply the provisions of the Agreement for the above-listed products, the provisions of the Free Trade Agreement between the EEC and Austria concerning bilateral trade in this sector, including the rules of origin of Protocol No 3 and all other relevant provisions, shall continue to be applicable. Under the same conditions, for trade between Austria and the other EFTA States in the above-listed products, Article 21 of, and Annex B to the EFTA Convention as well as all other relevant provisions shall continue to be applicable.

APPENDIX 2

List of raw materials subject to price compensation referred to in Article 3(3)

 

APPENDIX 3

Procedure for the amendment of the list of raw materials subject to price compensation referred to in Article 3(3) and Appendix 2

 

APPENDIX 4

Rules concerning the declarations to be used and procedures for their submission referred to in Article 4(2)

 

APPENDIX 5

Details of the verification procedure of the declaration referred to in Article 5(2)

 

APPENDIX 6

Details of the reference prices to be used, the notification system and the procedures for the confirmation of the reference prices referred to in Article 6(3)

 

APPENDIX 7

List of coefficients to be applied and referred to in Article 7(2).

TABLE I

HS heading No

Description of goods

0403

Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa:

10

– Yoghurt:

ex 10

– – Flavoured or containing added fruit, nuts or cocoa

90

– Other:

ex 90

– – Flavoured or containing added fruit, nuts or cocoa

0710

Vegetables (uncooked or cooked by steaming or boiling in water), frozen:

40

– Sweet corn (Zea mays var. saccharata)

0711 (1)

Vegetables provisionally preserved (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), but unsuitable in that state for immediate consumption:

90

– Other vegetables; mixtures of vegetables:

ex 90

– – Sweet corn (Zea mays var. saccharata)

1302

Vegetable saps and extracts; pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners, whether or not modified, derived from vegetable products:

20

– Pectic substances, pectinates and pectates:

ex 20

– – Containing 5% or more by weight of added sugar

1517

Margarine; edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this Chapter, other than edible fats or oils or their fractions of heading No 1516:

10

– Margarine, excluding liquid margarine:

ex 10

– – Containing more than 10% but not more than 15% by weight of milkfats

90

– Other:

ex 90

– – Containing more than 10% but not more than 15% by weight of milkfats

1702

Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel:

50

– Chemically pure fructose

1704

Sugar confectionery (including white chocolate), not containing cocoa

1806

Chocolate and other food preparations containing cocoa

1901

Malt extract; food preparations of flour, meal, starch or malt extract, not containing cocoa powder or containing cocoa powder in a proportion by weight of less than 50%, not elsewhere specified or included; food preparations of goods of heading Nos 0401 to 0404, not containing cocoa powder or containing cocoa powder in a proportion by weight of less than 10%, not elsewhere specified or included

1902

Pasta, whether or not cooked or stuffed (with meat or other substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni; couscous, whether or not prepared;

– Uncooked pasta, not stuffed or otherwise prepared;

11

– – Containing eggs

19

– – Other

20

– Stuffed pasta, whether or not cooked or otherwise prepared:

ex 20

– – Other than products containing more than 20% by weight of sausage, meat, meat offal or blood, or any combination thereof

30

– Other pasta

40

– Couscous

1903

Tapioca and substitutes therefor prepared from starch, in the form of flakes, grains, pearls, siftings or in similar forms

1904

Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example, corn flakes); cereals, other than maize corn, in grain form, pre-cooked or otherwise prepared

1905

Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products

2001

Vegetables, fruit, nuts and other edible parts of plants, prepared or preserved by vinegar or acetic acid;

90

– Other:

ex 90

– – Sweet corn (Zea mays var. saccharata); yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch

2004

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen:

10

– Potatoes:

ex 10

– – In the form of flour, meal or flakes

90

– Other vegetables and mixtures of vegetables:

ex 90

– – Sweet corn (Zea mays var. saccharata)

2005

Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, not frozen:

20

– Potatoes:

ex 20

– – In the form of flour, meal or flakes

80

– Sweet corn (Zea mays var. saccharata)

2007

Jams, fruit jellies, marmalades, fruit or nut puree and fruit or nut pastes, being cooked preparations, whether or not containing added sugar or other sweetening matter

2008

Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included:

– Nuts, ground-nuts and other seeds, whether or not mixed together:

11

– – Ground-nuts:

ex 11

– – – Peanut butter

– Other, including mixtures other than those of subheading No 2008 19:

92

– – Mixtures:

ex 92

– – – Based on cereals

99

– – Other:

ex 99

– – – Maize (corn), other than sweet corn (Zea mays var. saccharata)

2101

Extracts, essences and concentrates, of coffee, tea or maté and preparations with a basis of these products or with a basis of coffee, tea or maté; roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof:

10

– Extracts, essences and concentrates, of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee:

ex 10

– – Containing by weight 1.5% or more milkfat, 2.5% or more milk proteins, 5% or more sugar or 5% or more starch

20

– Extracts, essences and concentrates, of tea or maté, and preparations with a basis of these extracts, essences or concentrates, or with a basis of tea or maté:

ex 20

– – Containing by weight 1,5% or more milkfat, 2.5% or more milk proteins, 5% or more sugar or 5% or more starch

30

– Roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof:

ex 30

– – Other roasted coffee substitutes than roasted chicory; extracts, essences and concentrates of other roasted coffee substitutes than roasted chicory

2102

Yeasts (active or inactive); other single-cell micro-organisms, dead (but not including vaccines of heading No 3002); prepared baking powders:

10

– Active yeasts:

ex 10

– – Other than bakers' yeast, excluding those for animal feeding

20

– Inactive yeasts; other single-cell micro-organisms, dead:

ex 20

– – Other than those for animal feeding

30

– Prepared baking powders

2103

Sauces and preparations therefor; mixed condiments and mixed seasonings; mustard flour and meal and prepared mustard:

20

– Tomato ketchup and other tomato sauces

30

– Mustard flour and meal and prepared mustard:

ex 30

– – Prepared mustard containing 5% or more by weight of added sugar

90

– Other:

ex 90

– – Other than mango chutney, liquid

2104

Soups and broths and preparations therefor; homogenized composite food preparations

2105

Ice cream and other edible ice, whether or not containing cocoa

2106

Food preparations not elsewhere specified or included:

ex 2106

– Other than flavoured or coloured sugar syrups

2203

Beer made from malt

2205

Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances

2208

Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol.; spirits, liqueurs and other spirituous beverages; compound alcoholic preparations of a kind used for the manufacture of beverages:

50

– Gin and geneva

90

– Other:

ex 90

– – Liqueurs containing more than 5% by weight of added sugar; vodka and aquavit

2209

Vinegar and substitutes for vinegar obtained from acetic acid

29.5

Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives:

– Other polyhydric alcohols:

43

– – Mannitol

44

– – D-glucitol (sorbitol)

3505

Dextrins and other modified starches (for example, pregelatinized or esterified starches); glues based on starches, or on dextrins or other modified starches:

ex 3505

– Other than starches, esterified or etherified (ex 10)

3809

Finishing agents, dye carriers to accelerate the dyeing or fixing of dyestuffs and other products and preparations (for example, dressings and mordants), of a kind used in the textile, paper, leather or like industries, not elsewhere specified or included:

10

– With a basis of amylaceous substances

3823

Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixture of natural products), not elsewhere specified or included; residual products of the chemical or allied industries, not elsewhere specified or included:

60

– Sorbitol other than that of subheading No 2905 44


TABLE II

HS heading No

Description of goods

0901

Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion

0902

Tea

1302

Vegetable saps and extracts, pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners, whether or not modified, derived from vegetable products:

– Vegetable saps and extracts:

12

– – Of liquorice

13

– – Of hops

20

– Pectic substances, pectinates and pectates:

ex 20

– – Containing less than 5% by weight of added sugar

– Mucilages and thickeners, whether or not modified, derived from vegetable products:

31

– – Agar-agar

32

– – Mucilages and thickeners, whether or not modified, derived from locust beans, locust bean seeds or guar seeds

39

– – Other

1404

Vegetable products not elsewhere specified or included:

20

– Cotton linters

1516

Animal or vegetable fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinized, whether or not refined, but not further prepared:

20

– Vegetable fats and oils and their fractions:

ex 20

– – Hydrogenated caster oil, so called ‘opal-wax’

1518

Animal or vegetable fats and oils and their fractions, boiled, oxidized, dehydrated, sulphurized, blown, polymerized by heat in vacuum or in inert gas or otherwise chemically modified, excluding those of heading No 1516; inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this Chapter, not elsewhere specified or included:

ex 1518

– Linoxyn

1519

Industrial monocarboxylic fatty acids; acid oils from refining; industrial fatty alcohols:

ex 1519

– Other than those for animal feeding

1520

Glycerol (glycerine), whether or not pure; glycerol waters and glycerol lyes

1521

Vegetable waxes (other than triglycerides), beeswax, other insect waxes and spermaceti, whether or not refined or coloured

1522

Degras; residues resulting from the treatment of fatty substances or animal or vegetable waxes

1702

Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing added flavouring or colouring matter; artificial honey, whether or not mixed with natural honey; caramel:

90

– Other, including invert sugar:

ex 90

– – Chemically pure maltose

1803

Cocoa paste, whether or not defatted

1804

Cocoa butter, fat and oil

1805

Cocoa powder, not containing added sugar or other sweetening matter

2002

Tomatoes prepared or preserved otherwise than by vinegar or acetic acid:

90

– Other than whole or in pieces

2008

Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit, not elsewhere specified or included:

– Other, including mixtures other than those of subheading No 2008 19:

91

– – Palm hearts

2101

Extracts, essences and concentrates, of coffee, tea or mat6 and preparations with a basis of these products or with a basis of coffee, tea or mate; roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof:

10

– Extracts, essences and concentrates, of coffee, and preparations with a basis of these extracts, essences or concentrates or with a basis of coffee:

ex 10

– – Containing no milkfats, milk proteins, sugar or starch or containing by weight less than 1.5% milkfat, 2.5% milk proteins, 5% sugar or 5% starch

20

– Extracts, essences and concentrates, of tea or mate, and preparations with a basis of these extracts, essences or concentrates or with a basis of tea or mate

ex 20

– – Containing no milkfats, milk proteins, sugar or starch or containing by weight less than 1.5% milkfat, 2.5% milk proteins, 5% sugar or 5% starch

30

– Roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof:

ex 30

– – Roasted chicory; extracts, essences and concentrates of roasted chicory

2103

Sauces and preparations therefor; mixed condiments and mixed seasonings; mustard flour and meal and prepared mustard:

10

– Soya sauce

30

– Mustard flour and meal and prepared mustard:

ex 30

– – Mustard flour and meal; prepared mustard containing less than 5% by weight of added sugar

90

– Other:

ex 90

– – Mango chutney, liquid

2201

Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow

2208

Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% vol.; spirits, liqueurs and other spirituous beverages; compound alcoholic preparations of a kind used for the manufacture of beverages:

20

– Spirits obtained by distilling grape wine or grape marc

30

– Whiskies

40

– Rum and tafia

90

– Other:

ex 90

– – Other than liqueurs containing more than 5% by weight of added sugar, vodka and aquavit


(1)  HS heading Nos 0711, 2001, 2004: Sweet corn mentioned under these headings does not include mixtures of sweet corn and other products of these headings.

PROTOCOL 4

on rules of origin

TABLE OF CONTENTS

TITLE I - GENERAL PROVISIONS 56

— Article 1

Definitions 56
TITLE II - DEFINITION OF THE CONCEPT OF ‘ORIGINATING PRODUCTS’ 56

— Article 2

Origin criteria 56

— Article 3

Wholly obtained products 56

— Article 4

Sufficiently worked or processed products 57

— Article 5

Insufficient working or processing operations 57

— Article 6

Unit of qualification 58

— Article 7

Accessories, spare parts and tools 58

— Article 8

Sets 58

— Article 9

Neutral elements 58
TITLE III - TERRITORIAL REQUIREMENTS 58

— Article 10

Principle of territoriality 58

— Article 11

Working or processing carried out outside the EEA 58

— Article 12

Reimportation of goods 59

— Article 13

Direct transport 59

— Article 14

Exhibitions 59
TITLE IV - DRAWBACK OR EXEMPTION 60

— Article 15

Prohibition of drawback of, or exemption from, customs duties 60
TITLE V - PROOF OF ORIGIN 60

— Article 16

General requirements 60

— Article 17

for the issue of a movement certificate EUR.1 61

— Article 18

Movement certificates EUR.1 issued retrospectively 61

— Article 19

Issue of a duplicate movement certificate EUR.1 62

— Article 20

Issue of movement certificates EUR.1 on the basis of proof of origin issued or made out previously 62

— Article 21

Conditions for making out an invoice declaration 62

— Article 22

Approved exporter 62

— Article 23

Validity of proof of origin 63

— Article 24

of proof of origin 63

— Article 25

Importation by instalments 63

— Article 26

Exemptions from formal proof of origin 63

— Article 27

's declaration 63

— Article 28

documents 64

— Article 29

Preservation of proof of origin, suppliers' declarations and supporting documents 64

— Article 30

Discrepancies and formal errors 65

— Article 31

Amounts expressed in ECUs 65
TITLE VI - ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION 65

— Article 32

Mutual assistance 65

— Article 33

of proof of origin 65

— Article 34

Verification of suppliers' declarations 66

— Article 35

settlement 66

— Article 36

Penalties 66
TITLE VII - CEUTA AND MELILLA 66

— Article 37

Provisions applicable to Ceuta and Melilla 66

— Article 38

Special conditions 67

LIST OF APPENDICES

Appendix I

Introductory notes to the list in Appendix II 68

Appendix II

List of working or processing required to be carried out on non-originating materials in order that the product manufactured can obtain originating status 72

Appendix III

Movement certificate EUR.1 and application for a movement certificate EUR.1 143

Appendix IV

Invoice declaration 149

Appendix V

Supplier's declaration 151

Appendix VI

Long-term supplier's declaration 153

Appendix VII

List of products referred to in Article 2(3) which are temporarily excluded from the scope of this Protocol except for the provisions in Titles IV to VI 155

Appendix VIII

List of products referred to in Article 2(2) in respect of which the territory of the Republic of Austria is excluded from that of the EEA for the purpose of determining origin 156

TITLE I

GENERAL PROVISIONS

Article 1

Definitions

For the purposes of this Protocol:

(a)

‘manufacture’ means any kind of working or processing including assembly or specific operations;

(b)

‘material’ means any ingredient, raw material, component or part, etc., used in the manufacture of the product;

(c)

‘product’ means the product being manufactured, even if it is intended for later use in another manufacturing operation;

(d)

‘goods’ means both materials and products;

(e)

‘customs value’ means the value as determined in accordance with the Agreement on implementation of Article VII of the General Agreement on Tariffs and Trade, done at Geneva on 12 April 1979;

(f)

‘ex-works price’ means the price paid for the product ex works to the manufacturer in the EEA in whose undertaking the last working or processing is carried out or to the person in the EEA who arranged for the last working or processing to be carried out outside the EEA, provided the price includes the value of all the materials used, minus any internal taxes which are, or may be, repaid when the product obtained is exported;

(g)

‘value of materials’ means the customs value at the time of importation of the non-originating materials used, or, if this is not known and cannot be ascertained, the first ascertainable price paid for the materials in the EEA;

(h)

‘value of originating materials’ means the value of such materials as defined in subparagraph (g) applied mutatis mutandis;

(i)

‘chapters’ and ‘headings’ means the chapters and the headings (four-digit codes) used in the nomenclature which makes up the Harmonized Commodity Description and Coding System, referred to in this Protocol as ‘the Harmonized System’ or ‘HS’;

(j)

‘classified’ refers to the classification of a product or material under a particular heading;

(k)

‘consignment’ means products which are either sent simultaneously from one exporter to one consignee or covered by a single transport document covering their shipment from the exporter to the consignee or, in the absence of such a document, by a single invoice.

TITLE II

DEFINITION OF THE CONCEPT OF ‘ORIGINATING PRODUCTS’

Article 2

Origin criteria

1.   A product shall be considered to be originating in the EEA within the meaning of this Agreement if it has been either wholly obtained or sufficiently worked or processed in the EEA. For this purpose, the territories of the Contracting Parties, including the territorial waters, to which this Agreement applies, shall be considered as a single territory.

2.   Notwithstanding paragraph 1, the territory of the Republic of Austria shall, until 1 January 1997, be excluded from that of the EEA for the purpose of determining the origin of the products referred to in Appendix VIII and such products shall only be considered to be originating in the EEA if they have been either wholly obtained or sufficiently worked or processed in the territories of the other Contracting Parties.

3.   The products referred to in Appendix VII shall be temporarily excluded from the scope of application of this Protocol. Nevertheless, the provisions in Titles IV to VI shall apply mutatis mutandis to these products.

Article 3

Wholly obtained products

1.   The following shall be considered as wholly obtained in the EEA:

(a)

mineral products extracted from its soil or from its seabed;

(b)

vegetable products harvested therein;

(c)

live animals born and raised therein;

(d)

products from live animals raised therein;

(e)

products obtained by hunting or fishing conducted therein;

(f)

products of sea fishing and other products taken from the sea outside the territorial waters of the Contracting Parties by their vessels;

(g)

products made aboard factory ships of the Contracting Parties exclusively from products referred to in subparagraph (f);

(h)

used articles collected there fit only for the recovery of raw materials, including used tyres fit only for retreading or for use as waste;

(i)

waste and scrap resulting from manufacturing operations conducted therein;

(j)

goods produced there exclusively from the products specified in subparagraphs (a) to (i).

2.   The terms ‘their vessels’ and ‘factory ships of the Contracting Parties’ in paragraphs 1(f) and (g) shall apply only to vessels and factory ships:

(a)

which are registered or recorded in an EC Member State or an EFTA State;

(b)

which sail under the flag of an EC Member State or an EFTA State;

(c)

which are owned to an extent of at least 50 per cent by nationals of EC Member States or EFTA States, or by a company with its head office in one of these States, of which the manager or managers, chairman of the board of directors or the supervisory board, and the majority of the members of such boards are nationals of EC Member States or EFTA States and of which, in addition, in the case of partnerships or limited companies, at least half the capital belongs to those States or to public bodies or nationals of the said States;

(d)

of which the master and officers are nationals of EC Member States or EFTA States; and

(e)

of which at least 75 per cent of the crew are nationals of EC Member States or EFTA States.

Article 4

Sufficiently worked or processed products

1.   For the purposes of Article 2, products which are not wholly obtained in the EEA are considered to be sufficiently worked or processed there when the conditions set out in the list in Appendix II are fulfilled.

These conditions indicate, for all products covered by the Agreement, the working or processing which must be carried out on the non-originating materials used in the manufacture of these products, and apply only in relation to such materials. Accordingly, it follows that if a product, which has acquired originating status by fulfilling the conditions set out in the list for that product, is used in the manufacture of another product, the conditions applicable to the product in which it is incorporated do not apply to it, and no account shall be taken of the non-originating materials which may have been used in its manufacture.

2.   Notwithstanding paragraph 1 and except as provided in Article 11(4), non-originating materials which, according to the conditions set out in the list for a given product, should not be used in the manufacture of this product may nevertheless be used, provided that:

(a)

their total value does not exceed 10 per cent of the ex-works price of the product;

(b)

where, in the list, one or several percentages are given for the maximum value of non-originating materials, such percentages are not exceeded through the application of this paragraph.

This paragraph shall not apply to products falling within Chapters 50 to 63 of the Harmonized System.

3.   Paragraphs 1 and 2 shall apply except as provided in Article 5.

Article 5

Insufficient working or processing operations

1.   The following operations shall be considered as insufficient working or processing to confer the status of originating products, whether or not the requirements of Article 4 are satisfied:

(a)

operations to ensure the preservation of products in good condition during transport and storage (ventilation, spreading out, drying, chilling, placing in salt, sulphur dioxide or other aqueous solutions, removal of damaged parts, and like operations);

(b)

simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching (including the making-up of sets of articles), washing, painting, cutting up;

(c)

(i)

changes of packaging and breaking up and assembly of packages;

(ii)

simple placing in bottles, flasks, bags, cases, boxes, fixing on cards or boards, etc., and all other simple packaging operations;

(d)

affixing marks, labels and other like distinguishing signs on products or their packaging;

(e)

simple mixing of products, whether or not of different kinds, where one or more components of the mixtures do not meet the conditions laid down in this Protocol to enable them to be considered as originating in the EEA;

(f)

simple assembly of parts to constitute a complete product;

(g)

a combination of two or more operations specified in subparagraphs (a) to (f);

(h)

slaughter of animals.

2.   All the operations carried out in the EEA on a given product shall be considered together when determining whether the working or processing undergone by that product is to be regarded as insufficient within the meaning of paragraph 1.

Article 6

Unit of qualification

1.   The unit of qualification for the application of the provisions of this Protocol shall be the particular product which is considered as the basic unit when determining classification using the nomenclature of the Harmonized System.

Accordingly, it follows that:

(a)

when a product composed of a group or assembly of articles is classified under the terms of the Harmonized System in a single heading, the whole constitutes the unit of qualification;

(b)

when a consignment consists of a number of identical products classified under the same heading of the Harmonized System, each product must be taken individually when applying the provisions of this Protocol.

2.   Where, under general rule 5 of the Harmonized System, packaging is included with the product for classification purposes, it shall be included for the purposes of determining origin.

Article 7

Accessories, spare parts and tools

Accessories, spare parts and tools dispatched with a piece of equipment, machine, apparatus or vehicle, which are part of the normal equipment and included in the price thereof or which are not separately invoiced, shall be regarded as one with the piece of equipment, machine, apparatus or vehicle in question.

Article 8

Sets

Sets, as defined in general rule 3 of the Harmonized System, shall be regarded as originating when all component products are originating. Nevertheless, when a set is composed of originating and non-originating products, the set as a whole shall be regarded as originating, provided that the value of the non-originating products does not exceed 15 per cent of the ex-works price of the set.

Article 9

Neutral elements

In order to determine whether a product originates in the EEA, it shall not be necessary to establish whether the energy, plant and equipment as well as machines and tools used to obtain such product, or whether any goods, used in the course of production which do not enter and which were not intended to enter into the final composition of the product, are originating or not.

TITLE III

TERRITORIAL REQUIREMENTS

Article 10

Principle of territoriality

The conditions set out in Title II relative to the acquisition of originating status must be fulfilled without interruption in the EEA. For this purpose, the acquisition of originating status shall be considered as interrupted when goods which have undergone working or processing in the EEA have left the EEA whether or not operations have been carried out outside this territory, except as provided in Articles 11 and 12.

Article 11

Working or processing carried out outside the EEA

1.   The acquisition of originating status under the conditions set out in Title II shall not be affected by working or processing carried out outside the EEA on materials exported from the EEA and subsequently reimported there, provided that:

(a)

the said materials are wholly obtained in the EEA or have undergone there working or processing going beyond the insufficient operations listed in Article 5 prior to their exportation outside the EEA; and

(b)

it can be demonstrated to the satisfaction of the customs authorities that:

(i)

the reimported goods result from the working or processing of the exported materials; and

(ii)

the total added value acquired outside the EEA through the application of this Article does not exceed 10 per cent of the ex-works price of the final product for which originating status is claimed.

2.   For the purposes of paragraph 1, the conditions set out in Title II relative to the acquisition of originating status shall not apply in respect of working or processing carried out outside the EEA. Nevertheless, where, in the list in Appendix II, a rule giving the maximum value of all the non-originating materials used is applied in determining the originating status of the final product concerned, the total value of the non-originating materials used in the EEA and the total added value acquired outside the EEA through the application of this Article taken together shall not exceed the percentage given.

3.   For the purposes of paragraphs 1 and 2, ‘total added value’ shall mean all costs accumulated outside the EEA, including all the value of the materials added there.

4.   Paragraphs 1 and 2 shall not apply to products which do not fulfil the conditions set out in the list in Appendix II and which can only be considered as sufficiently worked or processed as a result of the application of the general tolerance in Article 4(2).

5.   Paragraphs 1 and 2 shall not apply to products falling within Chapters 50 to 63 of the Harmonized System.

Article 12

Reimportation of goods

Goods exported from one of the Contracting Parties to a third country and subsequently returned, shall be considered as never having left the EEA if it can be demonstrated to the satisfaction of the customs authorities that:

(a)

the goods returned are the same goods as those exported; and

(b)

they have not undergone any operation beyond that necessary to preserve them in good condition while in that country or while being exported.

Article 13

Direct transport

1.   The preferential treatment provided for under the Agreement applies only to products, satisfying the requirements of this Protocol, which are transported within the EEA. However, products constituting one single consignment may be transported through territories other than that of the EEA, with, should the occasion arise, trans-shipment or temporary warehousing in such territories, provided that the products have remained under the surveillance of the customs authorities in the country of transit or of warehousing and that they have not undergone operations other than unloading, reloading or any operation designed to preserve them in good condition.

2.   Evidence that the conditions set out in paragraph 1 have been fulfilled shall be supplied to the customs authorities of the importing country by the production of:

(a)

a through bill of lading issued in the exporting country covering the passage through the country of transit; or

(b)

a certificate issued by the customs authorities of the country of transit:

(i)

giving an exact description of the products;

(ii)

stating the dates of unloading and reloading of the products and, where applicable, the names of the ships used; and

(iii)

certifying the conditions under which the products remained in the transit country; or

(c)

failing these, any substantiating documents.

Article 14

Exhibitions

1.   Products sent from one of the Contracting Parties for exhibition in a third country and sold after the exhibition for importation in another Contracting Party shall benefit on importation from the provisions of the Agreement on condition that the products meet the requirements of this Protocol entitling them to be recognized as originating in the EEA and provided that it is shown to the satisfaction of the customs authorities that:

(a)

an exporter has consigned these products from one of the Contracting Parties to the country in which the exhibition is held and has exhibited them there;

(b)

the products have been sold or otherwise disposed of by that exporter to a person in another Contracting Party;

(c)

the products have been consigned during the exhibition or immediately thereafter to the latter Contracting Party in the state in which they were sent for exhibition; and

(d)

the products have not, since they were consigned for exhibition, been used for any purpose other than demonstration at the exhibition.

2.   A proof of origin must be issued or made out in accordance with the provisions of Title V and submitted to the customs authorities of the importing country in the normal manner. The name and address of the exhibition must be indicated thereon. Where necessary, additional documentary evidence of the nature of the products and the conditions under which they have been exhibited may be required.

3.   Paragraph 1 shall apply to any trade, industrial, agricultural or crafts exhibition, fair or similar public show or display which is not organized for private purposes in shops or business premises with a view to the sale of foreign products, and during which the products remain under customs control.

TITLE IV

DRAWBACK OR EXEMPTION

Article 15

Prohibition of drawback of, or exemption from, customs duties

1.   Non-originating materials used in the manufacture of products originating in the EEA within the meaning of this Protocol for which a proof of origin is issued or made out in accordance with the provisions of Title V shall not be subject in any of the Contracting Parties to drawback of, or exemption from, customs duties of whatever kind.

2.   The prohibition in paragraph 1 shall apply to any arrangement for refund, remission or non-payment, partial or complete, of customs duties or charges having an equivalent effect, applicable in any of the Contracting Parties to materials used in the manufacture, where such refund, remission or non-payment applies, expressly or in effect, when products obtained from the said materials are exported and not when they are retained for home use in this Contracting Party.

3.   The exporter of products covered by a proof of origin shall be prepared to submit at any time, upon request from the customs authorities, all appropriate documents proving that no drawback has been obtained in respect of the non-originating materials used in the manufacture of the products concerned and that all customs duties or charges having equivalent effect applicable to such materials have actually been paid.

4.   The provisions of paragraphs 1 to 3 shall also apply in respect of packaging within the meaning of Article 6(2), accessories, spare parts and tools within the meaning of Article 7 and products in a set within the meaning of Article 8 when such items are non-originating.

5.   The provisions of paragraphs 1 to 4 shall apply only in respect of materials which are of the kind to which the Agreement applies. Furthermore, they shall not preclude the application by the Contracting Parties of price compensation measures for agricultural products applicable upon export in accordance with the provisions of the Agreement.

TITLE V

PROOF OF ORIGIN

Article 16

General requirements

1.   Originating products within the meaning of this Protocol shall, on importation into one of the Contracting Parties, benefit from the Agreement upon submission of either:

(a)

a movement certificate EUR.1, a specimen of which appears in Appendix III; or

(b)

in the cases specified in Article 21(1), a declaration, the text of which appears in Appendix IV, given by the exporter on an invoice, a delivery note or any other commercial document which describes the products concerned in sufficient detail to enable them to be identified (hereinafter referred to as the ‘invoice declaration’).

2.   Notwithstanding paragraph 1, originating products within the meaning of this Protocol shall, in the cases specified in Article 26, benefit from the Agreement without it being necessary to submit any of the documents referred to above.

Article 17

Procedure for the issue of a movement certificate EUR.1

1.   A movement certificate EUR.1 shall be issued by the customs authorities of the exporting country on application having been made in writing by the exporter or, under the exporter's responsibility, by his authorized representative.

2.   For this purpose, the exporter or his authorized representative shall fill out both the movement certificate EUR.1 and the application form, specimens of which appear in Appendix III.

These forms shall be completed in one of the languages in which the Agreement is drawn up, in accordance with the provisions of the domestic law of the exporting country. If they are handwritten, they shall be completed in ink in printed characters. The description of the products must be given in the box reserved for this purpose without leaving any blank lines. Where the box is not completely filled a horizontal line must be drawn below the last line of the description, the empty space being crossed through.

3.   The exporter applying for the issue of a movement certificate EUR.1 shall be prepared to submit at any time, at the request of the customs authorities of the exporting country where the movement certificate EUR.1 is issued, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Protocol.

4.   A movement certificate EUR.1 shall be issued by the customs authorities of an EC Member State or an EFTA State if the products concerned can be considered as products originating in the EEA and fulfil the other requirements of this Protocol.

5.   The issuing customs authorities shall take any steps necessary to verify the originating status of the products and the fulfilment of the other requirements of this Protocol. For this purpose, they shall have the right to call for any evidence and to carry out any inspection of the exporter's accounts or any other check which they consider appropriate.

The issuing customs authorities shall also ensure that the forms referred to in paragraph 2 are duly completed. In particular, they shall check whether the space reserved for the description of the products has been completed in such a manner as to exclude all possibility of fraudulent additions.

6.   The date of issue of the movement certificate EUR.1 shall be indicated in the part of the certificate reserved for the customs authorities.

7.   A movement certificate EUR.1 shall be issued by the customs authorities of the exporting country when the products to which it relates are exported. It shall be made available to the exporter as soon as actual exportation has been effected or ensured.

Article 18

Movement certificates EUR.1 issued retrospectively

1.   Notwithstanding Article 17(7), a movement certificate EUR.1 may exceptionally be issued after exportation of the products to which it relates if:

(a)

it was not issued at the time of exportation because of errors or involuntary omissions or special circumstances; or

(b)

it is demonstrated to the satisfaction of the customs authorities that a movement certificate EUR.1 was issued but was not accepted at importation for technical reasons.

2.   For the implementation of paragraph 1, the exporter must indicate in his application the place and date of exportation of the products to which the movement certificate EUR.1 relates, and state the reasons for his request.

3.   The customs authorities may issue a movement certificate EUR.1 retrospectively only after verifying that the information supplied in the exporter's application agrees with that in the corresponding file.

4.   Movement certificates EUR.1 issued retrospectively must be endorsed with one of the following phrases:

‘EXPEDIDO A POSTERIORI’, ‘UDSTEDT EFTER-F0LGENDE’, ‘NACHTRÄGLICH AUSGESTELLT’, ‘ΕΚΔΟΘΕΝ ΕΚ ΤΩΝ ΥΣΤΕΡΩΝ’, ‘ISSUED RETROSPECTIVELY’, ‘DÉLIVRÉ A POSTERIORI’, ‘RILASCIATO A POSTERIORI’, ‘AFGEGEVEN A POSTERIORI’, ‘EMITIDO A POSTERIORI’, ‘ŰTGEFID EFTIR Á’, ‘UTSTEDT SENERE’, ‘ANNETTU JÄLKIKÄTEEN’, ‘UTFÄRDAT I EFTERHAND’.

5.   The endorsement referred to in paragraph 4 shall be inserted in the ‘Remarks’ box of the movement certificate EUR.1.

Article 19

Issue of a duplicate movement certificate EUR.1

1.   In the event of theft, loss or destruction of a movement certificate EUR.1, the exporter may apply to the customs authorities which issued it for a duplicate made out on the basis of the export documents in their possession.

2.   The duplicate issued in this way must be endorsed with one of the following words:

‘DUPLICADO’, ‘DUPLIKAT’, ‘DUPLIKAT’, ‘ΑΝΤΙΓΡΑΦΟ’, ‘DUPLICATE’, ‘DUPLICATE’, ‘DUPLICATO’, ‘DUPLICAAT’, ‘SEGUNDA VIA’, ‘EFTIRRIT’, ‘DUPLIKAT’, ‘KAKSOISKAPPALE’, ‘DUPLIKAT’.

3.   The endorsement referred to in paragraph 2 shall be inserted in the ‘Remarks’ box of the duplicate movement certificate EUR.1.

4.   The duplicate, which must bear the date of issue of the original movement certificate EUR.1, shall take effect as from that date.

Article 20

Issue of movement certificates EUR.1 on the basis of proof of origin issued or made out previously

When products constituting a single consignment covered by a movement certificate EUR.1 or an invoice declaration are placed under the control of a customs office in an EC Member State or an EFTA State, it shall be possible to replace the original proof of origin by one or more movement certificates EUR.1 issued by this customs office for the purpose of sending all or some of these products to other customs offices whether or not located in the same EC Member State or EFTA State.

Article 21

Conditions for making out an invoice declaration

1.   An invoice declaration as referred to in Article 16(l)(b) may be made out:

(a)

by an approved exporter within the meaning of Article 22;

(b)

by any exporter for any consignment consisting of one or more packages containing originating products whose total value does not exceed ECU 6 000.

2.   An invoice declaration may be made out if the products concerned can be considered as products originating in the EEA and fulfil the other requirements of this Protocol.

3.   The exporter making out an invoice declaration shall be prepared to submit at any time, at the request of the customs authorities of the exporter's country, all appropriate documents proving the originating status of the products concerned as well as the fulfilment of the other requirements of this Protocol.

4.   An invoice declaration shall be made out by the exporter by typing, stamping or printing on the invoice, the delivery note or another commercial document, the declaration, the text of which appears in Appendix IV, using one of the linguistic versions set out in that Appendix in accordance with the provisions of the domestic law of the exporting country. The declaration may also be handwritten; in such a case, it shall be written in ink in printed characters.

5.   Invoice declarations shall bear the original signature of the exporter in manuscript.

However, an approved exporter within the meaning of Article 22 shall not be required to sign such declarations provided that he gives the customs authorities of the exporting country a written undertaking that he accepts full responsibility for any invoice declaration which identifies him as if it had been signed in manuscript by him.

6.   An invoice declaration may be made out by the exporter when the products to which it relates are exported or subsequently. If the invoice declaration is made out after the products to which it relates have been declared to the customs authorities in the importing country, this invoice declaration must bear a reference to the documents already submitted to these authorities.

Article 22

Approved exporter

1.   The customs authorities of the exporting country may authorize any exporter, hereinafter referred to as ‘approved exporter’, who makes frequent shipments of products under the Agreement, and who offers to the satisfaction of the customs authorities all guarantees necessary to verify the originating status of those products as well as the fulfilment of the other requirements of this Protocol, to make out invoice declarations irrespective of the value of the products concerned.

2.   The customs authorities may grant the status of approved exporter subject to any conditions which they consider appropriate.

3.   The customs authorities shall grant to the approved exporter a customs authorization number which shall appear on the invoice declaration,

4.   The customs authorities shall monitor the use of the authorization by the approved exporter.

5.   The customs authorities may withdraw the authorization at any time. They shall do so where the approved exporter no longer offers the guarantees referred to in paragraph 1, does not fulfil the conditions referred to in paragraph 2 or otherwise makes an incorrect use of the authorization.

Article 23

Validity of proof of origin

1.   A movement certificate EUR.1 shall be valid for four months from the date of issue in the exporting country, and must be submitted within the said period to the customs authorities of the importing country.

An invoice declaration shall be valid for four months from the date it was made out by the exporter and must be submitted within the said period to the customs authorities of the importing country.

2.   Movement certificates EUR.1 and invoice declarations which are submitted to the customs authorities of the importing country after the final date for presentation specified in paragraph 1 may be accepted for the purpose of applying preferential treatment, where the failure to submit these documents by the final date set is due to reasons of force majeure or exceptional circumstances.

3.   In other cases of belated presentation, the customs authorities of the importing country may accept the movement certificates EUR.1 or invoice declarations where the products have been submitted to them before the said final date.

Article 24

Submission of proof of origin

Movement certificates EUR.1 and invoice declarations shall be submitted to the customs authorities of the importing country in accordance with the procedures applicable in that country. The said authorities may require a translation of a movement certificate EUR.1 or an invoice declaration. They may also require the import declaration to be accompanied by a statement from the importer to the effect that the products meet the conditions required for the implementation of the Agreement.

Article 25

Importation by instalments

Where, at the request of the importer and on the conditions laid down by the customs authorities of the importing country, dismantled or non-assembled products within the meaning of general rule 2(a) of the Harmonized System falling within Sections XVI and XVII or heading Nos 7308 and 9406 of the Harmonized System are imported by instalments, a single proof of origin for such products shall be submitted to the customs authorities upon importation of the first instalment.

Article 26

Exemptions from formal proof of origin

1.   Products sent as small packages from private persons to private persons or forming part of travellers' personal luggage shall be admitted as originating products without requiring the submission of a formal proof of origin, provided that such products are not imported by way of trade and have been declared as meeting the requirements of this Protocol and where there is no doubt as to the veracity of such declaration. In the case of products sent by post, this declaration can be made on the customs declaration C2/CP3 or on a sheet of paper annexed to that document.

2.   Imports which are occasional and consist solely of products for the personal use of the recipients or travellers or their families shall not be considered as imports by way of trade if it is evident from the nature and quantity of the products that no commercial purpose is in view.

3.   Furthermore, the total value of these products must not exceed ECU 500 in the case of small packages or ECU 1 200 in the case of products forming part of travellers personal luggage.

Article 27

Supplier's declaration

1.   When a movement certificate EUR.1 is issued, or an invoice declaration is made out, in one of the Contracting Parties for originating products, in the manufacture of which goods coming from other Contracting Parties which have undergone working or processing in the EEA without having obtained preferential originating status have been used, account shall be taken of suppliers' declarations given for these goods in accordance with this Article.

2.   The supplier's declaration referred to in paragraph 1 shall serve as the evidence of the working or processing undergone in the EEA by the goods concerned for the purpose of determining whether the products in the manufacture of which these goods are used, can be considered as products originating in the EEA and fulfil the other requirements of this Protocol.

3.   A separate supplier's declaration shall, except in cases provided for in paragraph 4, be made out by the supplier for each consignment of goods in the form prescribed in Appendix V on a sheet of paper annexed to the invoice, the delivery note or any other commercial document describing the goods concerned in sufficient detail to enable them to be identified.

4.   Where a supplier regularly supplies a particular customer with goods for which the working or processing undergone in the EEA is expected to remain constant for considerable periods of time, he may provide a single supplier's declaration to cover subsequent consignments of those goods, hereinafter referred to as a ‘long-term supplier's declaration’.

A long-term supplier's declaration may normally be valid for a period of up to one year from the date of making out the declaration. The customs authorities of the country where the declaration is made out lay down the conditions under which longer periods may be used.

The long-term supplier's declaration shall be made out by the supplier in the form prescribed in Appendix VI, and shall describe the goods concerned in sufficient detail to enable them to be identified. It shall be provided to the customer concerned before supplying him with the first consignment of goods covered by this declaration or together with his first consignment.

The supplier shall inform his customer immediately if the long-term supplier's declaration is no longer applicable to the goods supplied.

5.   The supplier's declaration referred to in paragraphs 3 and 4 shall be typed or printed using one of the languages in which the Agreement is drawn up, in accordance with the provisions of the domestic law of the country where it is made out, and shall bear the original signature of the supplier in manuscript. The declaration may also be handwritten; in such a case, it shall be written in ink in printed characters.

6.   The supplier making out a declaration must be prepared to submit at any time, at the request of the customs authorities of the country where the declaration is made out, all appropriate documents proving that the information given on this declaration is correct.

Article 28

Supporting documents

The documents referred to in Articles 17(3), 21(3) and 27(6) used for the purpose of proving that products covered by a movement certificate EUR.1 or an invoice declaration can be considered as products originating in the EEA and fulfil the other requirements of this Protocol and that the information given in a supplier's declaration is correct may consist inter alia of the following:

(a)

direct evidence of the processes carried out by the exporter or supplier to obtain the goods concerned, contained for example in his accounts or internal bookkeeping;

(b)

documents proving the originating status of materials used in the manufacture of the goods concerned issued or made out in the Contracting Party where these documents are used in accordance with the domestic law of that Contracting Party;

(c)

documents proving the working or processing undergone in the EEA by materials used in the manufacture of the goods concerned issued or made out in the Contracting Party where these documents are used in accordance with the domestic law of that Contracting Party;

(d)

movement certificates EUR.1 or invoice declarations proving the originating status of materials used in the manufacture of the goods concerned issued or made out in other Contracting Parties in accordance with this Protocol;

(e)

suppliers' declarations proving the working or processing undergone in the EEA by materials used in the manufacture of the goods concerned made out in other Contracting Parties in accordance with this Protocol;

(f)

appropriate evidence concerning working or processing undergone outside the EEA by application of Article 11, proving that the requirements of this Article have been satisfied.

Article 29

Preservation of proof of origin, suppliers' declarations and supporting documents

1.   The exporter applying for the issue of a movement certificate EUR.1 shall keep for at least two years the documents referred to in Article 17(3).

2.   The exporter making out an invoice declaration shall keep for at least two years a copy of this invoice declaration as well as the documents referred to in Article 21(3).

3.   The supplier making out a supplier's declaration shall keep for at least two years copies of the declaration and of the invoice, delivery note or other commercial document to which this declaration is annexed as well as the documents referred to in Article 27(6).

The supplier making out a long-term supplier's declaration shall keep for at least two years copies of the declaration and of all the invoices, delivery notes or other commercial documents concerning goods covered by that declaration sent to the customer concerned, as well as the documents referred to in Article 27(6). This period shall begin from the date of expiry of validity of the long-term supplier's declaration.

4.   The customs authorities of the exporting country issuing a movement certificate EUR.1 shall keep for at least two years the application form referred to in Article 17(2).

5.   The customs authorities of the importing country shall keep for at least two years the movement certificates EUR.1 and the invoice declarations submitted to them.

Article 30

Discrepancies and formal errors

1.   The discovery of slight discrepancies between the statements made in a movement certificate EUR.1, or in an invoice declaration and those made in the documents submitted to the customs office for the purpose of carrying out the formalities for importing the products shall not ipso facto render the movement certificate EUR.1, or the invoice declaration null and void if it is duly established that this document does correspond to the products submitted.

2.   Obvious formal errors such as typing errors on a movement certificate EUR.1, an invoice declaration or a supplier's declaration should not cause this document to be rejected if these errors are not such as to create doubts concerning the correctness of the statements made in this document.

Article 31

Amounts expressed in ECUs

1.   Amounts in the national currency of the exporting country equivalent to the amounts expressed in ECUs shall be fixed by the exporting country and communicated to the other Contracting Parties.

When the amounts exceed the corresponding amounts fixed by the importing country, the latter shall accept them if the products are invoiced in the currency of the exporting country. When the products are invoiced in the currency of another EC Member State or EFTA State, the importing country shall recognize the amount notified by the country concerned.

2.   Up to and including 30 April 1998, the amounts to be used in any given national currency shall be the equivalent in that national currency of the amounts expressed in ECUs as at 1 October 1992.

For each successive period of five years, the amounts expressed in ECUs and their equivalents in the national currencies of the EC Member States and the EFTA States shall be reviewed by the EEA Joint Committee on the basis of the exchange rates of the ECU as at the first working day in October in the year immediately preceding that five-years period.

When carrying out this review, the EEA Joint Committee shall ensure that there will be no decrease in the amounts to be used in any national currency and shall furthermore consider the desirability of preserving the effects of the limits concerned in real terms. For this purpose, it may decide to modify the amounts expressed in ECUs.

TITLE VI

ARRANGEMENTS FOR ADMINISTRATIVE COOPERATION

Article 32

Mutual assistance

In order to ensure the proper application of this Protocol, the Contracting Parties shall assist each other, through the competent customs administrations, in checking the authenticity of the movement certificates EUR.1, the invoice declarations and the suppliers' declarations and the correctness of the information given in these documents.

Article 33

Verification of proof of origin

1.   Subsequent verifications of movement certificates EUR.1 and of invoice declarations shall be carried out at random or whenever the customs authorities of the importing country have reasonable doubts as to the authenticity of such documents, the originating status of the products concerned or the fulfilment of the other requirements of this Protocol.

2.   For the purposes of implementing the provisions of paragraph 1, the customs authorities of the importing country shall return the movement certificate EUR.1 and the invoice, if it has been submitted, or the invoice declaration, or a copy of these documents, to the customs authorities of the exporting country giving, where appropriate, the reasons of substance or form for an inquiry.

They shall forward, in support of the request for subsequent verification, any documents and information that have been obtained suggesting that the information given on the movement certificate EUR.1 or the invoice declaration is incorrect.

3.   The verification shall be carried out by the customs authorities of the exporting country. For this purpose, they shall have the right to call for any evidence and to carry out any inspection of the exporter's accounts or any other check which they consider appropriate.

4.   If the customs authorities of the importing country decide to suspend the granting of preferential treatment to the products concerned while awaiting the results of the verification, they shall offer to release the products to the importer subject to any precautionary measures judged necessary.

5.   The customs authorities requesting the verification shall be informed of the results of this verification as soon as possible. These results must indicate clearly whether the documents are authentic and whether the products concerned can be considered as products originating in the EEA and fulfil the other requirements of this Protocol.

Article 34

Verification of supplier's declarations

1.   Subsequent verifications of suppliers' declarations or long-term suppliers' declarations may be carried out at random or whenever the customs authorities of the country where such declarations have been taken into account to issue a movement certificate EUR.1 or to make out an invoice declaration have reasonable doubts as to the authenticity of the document or the correctness of the information given in this document.

2.   For the purposes of implementing the provisions of paragraph 1, the customs authorities of the abovementioned country shall return the supplier's declaration and the invoice(s), delivery note(s) or other commercial document(s) concerning goods covered by this declaration, to the customs authorities of the country where the declaration was made out, giving, where appropriate, the reasons of substance or form for an inquiry.

They shall forward, in support of the request for subsequent verification, any documents and information that have been obtained suggesting that the information given in the supplier's declaration is incorrect.

3.   The verification shall be carried out by the customs authorities of the country where the supplier's declaration was made out. For this purpose, they shall have the right to call for any evidence and to carry out any inspection of the supplier's accounts or any other check which they consider appropriate.

4.   The customs authorities requesting the verification shall be informed of the results of this verification as soon as possible. These results must indicate clearly whether the information given in the supplier's declaration is correct and make it possible for them to determine whether and to what extent this supplier's declaration could be taken into account for issuing a movement certificate EUR.1 or for making out an invoice declaration.

Article 35

Dispute settlement

Where disputes arise in relation to the verification procedures of Articles 33 and 34 which cannot be settled between the customs authorities requesting a verification and the customs authorities responsible for carrying out this verification or where they raise a question as to the interpretation of this Protocol, they shall be submitted to the EEA Joint Committee.

Article 36

Penalties

Penalties shall be imposed on any person who draws up, or causes to be drawn up, a document which contains incorrect information for the purpose of obtaining a preferential treatment for products.

TITLE VII

CEUTA AND MELILLA

Article 37

Provisions applicable to Ceuta and Melilla

1.   The term ‘EEA’ used in this Protocol does not cover Ceuta and Melilla. The term ‘products originating in the EEA’ does not cover products originating in Ceuta and Melilla.

2.   For the purpose of the application of Protocol 49 to the Agreement concerning products originating in Ceuta and Melilla, this Protocol shall apply mutatis mutandis subject to the special conditions set out in Article 38.

Article 38

Special conditions

1.   The following shall be considered as:

(a)

products originating in Ceuta and Melilla:

(i)

products wholly obtained in Ceuta and Melilla;

(ii)

products obtained in Ceuta and Melilla in the manufacture of which materials which are not wholly obtained there have been used provided that these products have undergone sufficient working or processing in Ceuta and Melilla. This condition shall not apply, however, in respect of materials originating in the EEA within the meaning of this Protocol.

(b)

products originating in the EEA:

(i)

products wholly obtained in the EEA;

(ii)

products obtained in the EEA in the manufacture of which materials which are not wholly obtained there have been used provided that these products have undergone sufficient working or processing in the EEA. This condition shall not apply, however, in respect of materials originating in Ceuta and Melilla within the meaning of this Protocol.

2.   Ceuta and Melilla shall be considered as a single territory.

3.   When a proof of origin, issued or made out in accordance with this Protocol relates to products originating in Ceuta and Melilla, the exporter must clearly indicate them by means of the symbol ‘CM’.

In the case of a movement certificate EUR.1, this shall be indicated in box 4 of the certificate.

In the case of an invoice declaration, this shall be indicated on the document in which the declaration is made.

4.   The Spanish customs authorities shall be responsible for the application of this Protocol in Ceuta and Melilla.

5.   Article 15 shall not apply to trade between Ceuta and Melilla, on the one hand, and the EFTA States on the other.

APPENDIX I

Introductory notes to the list in Appendix II

Note 1:

The list sets out for all products covered by the Agreement the conditions required for these products to be considered as sufficiently worked or processed within the meaning of Article 4(1) of the Protocol.

Note 2:

2.1.

The first two columns in the list describe the product obtained. The first column gives the heading number or chapter number used in the Harmonized System and the second column gives the description of goods used in that system for that heading or chapter. For each entry in the first two columns a rule is specified in columns 3 or 4. Where, in some cases, the entry in the first column is preceded by an ‘ex’, this signifies that the rules in columns 3 or 4 apply only to the part of that heading or chapter as described in column 2.

2.2.

Where several heading numbers are grouped together in column 1 or a chapter number is given and the description of products in column 2 is therefore given in general terms, the adjacent rules in columns 3 or 4 apply to all products which, under the Harmonized System, are classified in headings of the chapter or in any of the headings grouped together in column 1.

2.3.

Where there are different rules in the list applying to different products within a heading, each indent contains the description of that part of the heading covered by the adjacent rules in columns 3 or 4.

2.4.

Where, for an entry in the first two columns, a rule is specified in both columns 3 and 4, the exporter may opt, as an alternative, to apply either the rule set out in column 3 or that set out in column 4. If no origin rule is given in column 4, the rule set out in column 3 has to be applied.

Note 3:

3.1.

The provisions of Article 4(1) of the Protocol concerning products having acquired originating status which are used in the manufacture of other products apply regardless of whether this status has been acquired inside the factory where these products are used, in another factory in the same country or in another EEA country.

Example:

An engine of heading No 8407, for which the rule states that the value of the non-originating materials which may be incorporated may not exceed 40% of the ex-works price, is made from other alloy steel roughly shaped by forging of heading No ex 7224.

If this forging has been forged in the EEA from a non-originating ingot, it has already acquired originating status by virtue of the rule for heading No ex 7224 in the list. The forging can then count as originating in the value calculation for the engine regardless of whether it was produced in the same factory, in another factory in the same country or in another EEA country. The value of the non-originating ingot is thus not taken into account when adding up the value of the non-originating materials used.

3.2.

The rule in the list represents the minimum amount of working or processing required and the carrying out of more working or processing also confers originating status; conversely, the carrying out of less working or processing cannot confer originating status. Thus if a rule provides that non-originating material at a certain level of manufacture may be used, the use of such material at an earlier stage of manufacture is allowed and the use of such material at a later stage is not.

3.3.

When a rule in the list specifies that a product may be manufactured from more than one material, this means that any one or more materials may be used. It does not require that all be used.

Example:

The rule for fabrics of ex Chapter 50 to Chapter 55 provides that natural fibres may be used and that chemical materials, among other materials, may also be used. This does not mean that both have to be used; it is possible to use one or the other or both.

3.4.

Where a rule in the list specifies that a product must be manufactured from a particular material, the condition obviously does not prevent the use of other materials which, because of their inherent nature, cannot satisfy the rule. (See also Note 6.2 below in relation to textiles.)

Example:

The rule for prepared foods of heading No 1904 which specifically excludes the use of cereals and their derivatives does not prevent the use of mineral salts, chemicals and other additives which are not produced from cereals.

However, this does not apply to products which, although they cannot be manufactured from the particular material specified in the list, can be produced from a material of the same nature at an earlier stage of manufacture.

Example:

In the case of an article of apparel of ex Chapter 62 made from non-woven materials, if the use of only non-originating yarn is allowed for this class of article, it is not possible to start from non-woven cloth -even if non-woven cloths cannot normally be made from yarn. In such cases, the starting material would normally be at the stage before yarn - that is the fibre stage.

3.5.

Where, in a rule in the list, two percentages are given for the maximum value of non-originating materials that can be used, then these percentages may not be added together. In other words, the maximum value of all the non-originating materials used may never exceed the highest of the percentages given. Furthermore, the individual percentages must not be exceeded in relation to the particular materials they apply to.

Note 4:

4.1.

The term ‘natural fibres’ is used in the list to refer to fibres other than artificial or synthetic fibres. It is restricted to the stages before spinning takes place, including waste, and, unless otherwise specified, includes fibres that have been carded, combed or otherwise processed but not spun.

4.2.

The term ‘natural fibres’ includes horsehair of heading No 0503, silk of heading Nos 5002 and 5003 as well as the wool fibres, fine or coarse animal hair of heading Nos 5101 to 5105, the cotton fibres of heading Nos 5201 to 5203 and the other vegetable fibres of heading Nos 5301 to 5305.

4.3.

The terms ‘textile pulp’, ‘chemical materials’ and ‘paper-making materials’ are used in the list to describe the materials not classified in Chapters 50 to 63, which can be used to manufacture artificial, synthetic or paper fibres or yarns.

4.4.

The term ‘man-made staple fibres’ is used in the list to refer to synthetic or artificial filament tow, staple fibres or waste, of heading Nos 5501 to 5507.

Note 5:

5.1.

Where for a given product in the list a reference is made to this note, the conditions set out in column 3 shall not be applied to any basic textile materials, used in the manufacture of this product, which, taken together, represent 10% or less of the total weight of all the basic textile materials used. (See also Notes 5.3 and 5.4 below.)

5.2.

However, this tolerance may only be applied to mixed products which have been made from two or more basic textile materials.

The following are the basic textile materials:

silk,

wool,

coarse animal hair,

fine animal hair,

horsehair,

cotton,

paper-making materials and paper,

flax,

true hemp,

jute and other textile bast fibres,

sisal and other textile fibres of the genus Agave,

coconut, abaca, ramie and other vegetable textile fibres,

synthetic man-made filaments

artificial man-made filaments

synthetic man-made staple fibres,

artificial man-made staple fibres.

Example:

A yarn of heading No 5205 made from cotton fibres of heading No 5203 and synthetic staple fibres of heading No 5506 is a mixed yarn. Therefore, non-originating synthetic staple fibres that do not satisfy the origin rules (which require manufacture from chemical materials or textile pulp) may be used up to a weight of 10% of the yarn.

Example:

A woollen fabric of heading No 5112 made from woollen yarn of heading No 5107 and synthetic yarn of staple fibres of heading No 5509 is a mixed fabric. Therefore synthetic yarn which does not satisfy the origin rules (which require manufacture from chemical materials or textile pulp) or woollen yarn that does not satisfy the origin rules (which require manufacture from natural fibres, not carded or combed or otherwise prepared for spinning) or a combination of the two may be used provided their total weight does not exceed 10% of the weight of the fabric.

Example:

Tufted textile fabric of heading No 5802 made from cotton yarn of heading No 5205 and cotton fabric of heading No 5210 is only a mixed product if the cotton fabric is itself a mixed fabric being made from yarns classified in two separate headings or if the cotton yarns used are themselves mixtures.

Example:

If the tufted textile fabric concerned had been made from cotton yarn of heading No 5205 and synthetic fabric of heading No 5407, then, obviously, the yarns used are two separate basic textile materials and the tufted textile fabric is accordingly a mixed product.

Example:

A carpet with tufts made from both artificial yarns and cotton yarns and with a jute backing is a mixed product because three basic textile materials are used. Thus, any non-originating materials that are at a later stage of manufacture than the rule allows may be used, provided their total weight does not exceed 10% of the weight of the textile materials of the carpet. Thus, both the jute backing and/or the artificial yarns could be imported at that stage of manufacture, provided the weight conditions are met.

5.3.

In the case of products incorporating ‘yarn made of polyurethane segmented with flexible segments of polyether whether or not gimped’ this tolerance is 20% in respect of this yarn.

5.4.

In the case of products incorporating strip consisting of a core of aluminium foil or of a core of plastic film whether or not coated with aluminium powder, of a width not exceeding 5 mm, sandwiched by means of an adhesive between two films of plastic film, this tolerance is 30% in respect of this strip.

Note 6:

6.1.

In the case of those textile products which are marked in the list by a footnote referring to this note, textile materials, with the exception of linings and interlinings, which do not satisfy the rule set out in the list in column 3 for the made-up product concerned may be used provided that they are classified in a heading other than that of the product and that their value does not exceed 8% of the ex-works price of the product.

6.2.

Materials which are not classified within Chapters 50 to 63 may be used freely, whether or not they contain textiles.

Example:

If a rule in the list provides that for a particular textile item, such as trousers, yarn must be used, this does not prevent the use of metal items, such as buttons, because buttons are not classified within Chapters 50 to 63. For the same reason, it does not prevent the use of slide-fasteners even though slide-fasteners normally contain textiles.

6.3.

Where a percentage rule applies, the value of materials which are not classified within Chapters 50 to 63 must be taken into account when calculating the value of the non-originating materials incorporated.

APPENDIX II

List of working or processing required to be carried out on non-originating materials in order that the product manufactured can obtain originating status

HS heading No

Description of product

Working or processing carried out on non-originating materials that confers originating status

(1)

(2)

(3) or (4)

ex 0208

Other meat and edible meat offal, fresh chilled or frozen, of whale

Manufacture in which all the materials used are classified within a heading other than that of the product

 

Chapter 3

Fish and crustaceans, molluscs and other aquatic invertebrates

Manufacture in which all the materials of Chapter 3 used must be wholly obtained

 

ex 0403

Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, flavoured or containing added fruit, nuts or cocoa

Manufacture in which:

all the materials of Chapter 4 used must be wholly obtained,

any fruit juice (except those of pineapple, lime or grapefruit) of heading No 2009 used must already be originating, and

the value of any materials of Chapter 17 used does not exceed 30% of the ex-works price of the product

 

ex 0710 and ex 0711

Sweet corn (Zea mays var. saccharata)

Manufacture in which all the materials used are classified within a heading other than that of the product

 

0901

Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion

Manufacture from materials of any heading

 

0902

Tea, whether or not flavoured

Manufacture from materials of any heading

 

ex 1302

Vegetable saps and extracts of liquorice and hops; pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners, whether or not modified, derived from vegetable products:

 

 

- Mucilages and thickeners, modified, derived from vegetable products

Manufacture from non-modified mucilages and thickeners

 

- Other

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

ex 1404

Cotton linters

Manufacture in which all the materials used are classified within a heading other than that of the product

 

1504

Fats and oils and their fractions, of fish or marine mammals, whether or not refined, but not chemically modified:

 

 

- Solid fractions of fish oils and fats and oils of marine mammals

Manufacture from materials of any heading including other materials of heading No 1504

 

- Other

Manufacture in which all the materials of Chapters 2 and 3 used must be wholly obtained

 

ex 1516

Animal fats and oils and their fractions, partly or wholly hydrogenated, inter-esterified, re-esterified or elaidinized, whether or not refined, but not further prepared, obtained entirely from fish or marine mammals

Manufacture in which all the materials of Chapters 2 and 3 used must be wholly obtained

 

Hydrogenated castor oil, so-called ‘opal wax’

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex 1517

Margarine and edible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils of this chapter, other than edible fats or oils or their fractions of heading No 1516, containing more than 10% but not more than 15% by weight of milkfats

Manufacture in which:

all the materials used are classified within a heading other than that of the product, and

all the materials of Chapter 4 used must be wholly obtained

 

ex 1518

Linoxyn

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex 1519

Industrial monocarboxylic fatty acids, acid oils from refining or industrial fatty alcohols, not for animal feeding

 

 

- Industrial monocarboxylic fatty acids, acids oils from refining

Manufacture in which all the materials used are classified within a heading other than that of the product

 

- Industrial fatty alcohols

Manufacture from materials of any heading including other materials of heading No 1519

 

1520

Glycerol (glycerine), whether or not pure; glycerol waters and glycerol lyes

Manufacture in which all the materials used are classified in a heading other than that of the product

 

1521

Vegetable waxes (other than tri-glycerides), beeswax, other insect waxes and spermaceti, whether or not refined or coloured

Manufacture in which all the materials used are classified in a heading other than that of the product

 

1522

Degras; residues resulting from the treatment of fatty substances or animal or vegetable waxes

Manufacture in which all the materials used are classified in a heading other than that of the product

 

ex 1603

Extracts and juices of whale meat, fish or crustaceans, molluscs or other aquatic invertebrates

Manufacture in which all the materials of Chapters 2 and 3 must be wholly obtained

 

1604

Prepared or preserved fish, caviar and caviar substitutes prepared from fish eggs

Manufacture in which all the fish or fish eggs used must be wholly obtained

 

1605

Crustaceans, molluscs and other aquatic invertebrates prepared or preserved

Manufacture in which all the crustaceans, molluscs or other aquatic invertebrates used must be wholly obtained

 

ex 1702

Chemically pure fructose and maltose

Manufacture from materials of any heading including other materials of heading No 1702

 

1704

Sugar confectionery (including white chocolate), not containing cocoa

Manufacture in which all the materials used are classified in a heading other than that of the product, provided the value of any other materials of Chapter 17 used does not exceed 30% of the ex-works price of the product

 

1803

Cocoa paste, whether or not defatted

Manufacture in which all the materials used are classified within a heading other than that of the product

 

1804

Cocoa butter, fat and oil

Manufacture in which all the materials used are classified within a heading other than that of the product

 

1805

Cocoa powder, not containing added sugar or other sweetening matter

Manufacture in which all the materials used are classified within a heading other than that of the product

 

1806

Chocolate and other food preparations containing cocoa

Manufacture in which all the materials used are classified within a heading other than that of the product, provided the value of any materials of Chapter 17 used does not exceed 30% of the ex-works price of the product

 

1901

Malt extract; food preparations of flour, meal, starch or malt extract, not containing cocoa powder or containing cocoa powder in a proportion by weight of less than 50%, not elsewhere specified or included; food preparations of goods of heading Nos 0401 to 0404, not containing cocoa powder or containing cocoa powder in a proportion by weight of less than 10%, not elsewhere specified or included:

 

 

- Malt extract

Manufacture from cereals of Chapter 10

 

- Other

Manufacture in which all the materials used are classified within a heading other than that of the product, provided the value of any materials of Chapter 17 used does not exceed 30% of the ex-works price of the product

 

ex 1902

Pasta, whether or not cooked or stuffed (with meat of other substances) or otherwise prepared, such as spaghetti, macaroni, noodles, lasagne, gnocchi, ravioli, cannelloni - except for those containing more than 20% by weight of sausages, meat and meat offal or blood or any combination thereof; couscous, whether or not prepared

Manufacture in which all the cereals and derivatives (except durum wheat and its derivatives) used must be wholly obtained

 

1903

Tapioca and substitutes therefor prepared from starch, in the form of flakes, grains, pearls, siftings or in similar forms

Manufacture from materials of any heading except potato starch of heading No 1108

 

1904

Prepared foods obtained by the swelling or roasting of cereals or cereal products (for example, cornflakes); cereals, other than maize (corn), in grain form, precooked or otherwise prepared:

 

 

- Not containing cocoa:

 

 

- - Cereals, other than maize (corn), in grain form, precooked or otherwise prepared

Manufacture from materials of any heading. However, grains and cobs of sweet corn, prepared or preserved, of heading Nos 2001, 2004 and 2005 and uncooked, boiled or steamed sweet corn, frozen, of heading No 0710, may not be used

 

- - Other

Manufacture in which:

all the cereals and their derivatives (except maize of the species Zea Indurata and durum wheat and their derivatives) used must be wholly obtained, and

the value of any materials of Chapter 17 used does not exceed 30% of the ex-works price of the product

 

- Containing cocoa

Manufacture from materials not classified within heading No 1806, provided the value of any materials of Chapter 17 used does not exceed 30% of the ex-works price of the product

 

1905

Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products

Manufacture from materials of any heading, except those of Chapter 11 (1)

 

ex 2001

Sweet corn (Zea mays var. saccharata), prepared or preserved by vinegar or acetic acid; yams, sweet potatoes and similar edible parts of plants containing 5% or more by weight of starch, prepared or preserved by vinegar or acetic acid

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex 2002

Tomatoes prepared or preserved otherwise than by vinegar or acetic acid, not whole or in pieces

Manufacture in which all the tomatoes of Chapters 7 or 20 used must already be originating

 

ex 2004 and ex 2005

Potatoes in the form of flour, meal or flakes; prepared or preserved otherwise than by vinegar or acetic acid, sweet corn (Zea mays var. saccharata), prepared or preserved otherwise than by vinegar or acetic acid

Manufacture in which all the materials used are classified within a heading other than that of the product

 

2007

Jams, fruit jellies, marmalades, fruit or nut puree and fruit or nut pastes, being cooked preparations, whether or not containing added sugar or other sweetening matter

Manufacture in which:

all the materials used are classified within a heading other than that of the product, and

the value of any materials of Chapter 17 used does not exceed 30% of the ex-works price of the product

 

ex 2008

Peanut butter; mixtures based on cereals; palm hearts; maize (corn), other than sweet corn (Zea mays var. saccharata)

Manufacture in which all the materials used are classified within a heading other than that of the product

 

2101

Extracts, essences and concentrates, of coffee, tea or mate and preparations with a basis of these products or with a basis of coffee, tea or mat6; roasted chicory and other roasted coffee substitutes, and extracts, essences and concentrates thereof

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex 2102

Active yeasts, other than bakers' yeasts, excluding those for animal feeding; inactive yeasts, not for animal feeding; other single-cell micro-organisms, dead, not for animal feeding; prepared baking powders

Manufacture in which all the materials used are classified within a heading other than that of the product

 

2103

Sauces and preparations therefor; mixed condiments and mixed seasonings; mustard flour and meal and prepared mustard

 

 

- Sauces and preparations therefor; mixed condiments and mixed seasonings

Manufacture in which all the materials used are classified within a heading other than that of the product. However, mustard flour or meal or prepared mustard may be used

 

- Mustard flour and meal and prepared mustard

Manufacture from materials of any heading

 

2104

Soups and broths and preparations therefor; homogenized composite food preparations

 

 

- Soups and broths and preparations therefor

Manufacture from materials of any heading except prepared or preserved vegetables of heading Nos 2002 to 2005

 

- Homogenized composite food preparations

Manufacture in which all the materials used are classified within a heading other than that of the product

 

2105

Ice cream and other edible ice, whether or not containing cocoa

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex 2106

Food preparations not elsewhere specified or included

Manufacture in which all the materials used are classified within a heading other than that of the product

 

2201

Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured; ice and snow

Manufacture in which all the waters of Chapter 22 used must already be originating

 

2203

Beer made from malt

Manufacture in which all the materials used are classified within a heading other than that of the product

 

2205

Vermouth and other wine of fresh grapes flavoured with plants or aromatic substances

Manufacture in which all the grapes or any materials derived from grapes used must be wholly obtained

 

ex 2208

Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80% volume; spirits, liqueurs and other spirituous beverages

 

 

- Ouzo

Manufacture from:

materials not classified within heading Nos 2207 or 2208, and

in which all the grapes or any material derived from grapes used must be wholly obtained

 

- Other

Manufacture from:

materials not classified within heading Nos 2207 or 2208, and

in which all the grapes or any material derived from grapes used must be wholly obtained or if all the other materials used are already originating, arrack may be used up to a limit of 5% by volume

 

2209

Vinegar and substitutes for vinegar obtained from acetic acid

Manufacture in which:

all the materials used are classified within a heading other than that of the product, and

all the grapes or any material derived from grapes used must be wholly obtained

 

ex 2301

Whale meal; flours, meals and pellets of fish or of crustaceans, molluscs or other aquatic invertebrates

Manufacture in which all the materials of Chapters 2 and 3 used must be wholly obtained

 

ex 2309

Fish solubles

Manufacture in which all the materials of Chapter 3 used must be wholly obtained

 

ex Ch. 25

Salt; sulphur; earths and stone; plastering materials, lime and cement; except for heading Nos ex 2504 , ex 2515 , ex 2516 , ex 2518 , ex 2519 , ex 2520 , ex 2524 , ex 2525 and ex 2530 for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex 2504

Natural crystalline graphite, with enriched carbon content, purified and ground

Enriching of the carbon content, purifying and grinding of crude crystalline graphite

 

ex 2515

Marble, merely cut by sawing or otherwise into blocks or slabs of a rectangular (including square) shape, of a thickness not exceeding 25 cm

Cutting, by sawing or otherwise, of marble (even if already sawn) of a thickness exceeding 25 cm

 

ex 2516

Granite, porphyry, basalt, sandstone and other monumental and building stone, merely cut by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape, of a thickness not exceeding 25 cm

Cutting, by sawing or otherwise, of stone (even if already sawn) of a thickness exceeding 25 cm

 

ex 2518

Calcined dolomite

Calcination of dolomite not calcined

 

ex 2519

Crushed natural magnesium carbonate (magnesite), in hermetically sealed containers, and magnesium oxide, whether or not pure, other than fused magnesia or dead burned (sintered) magnesia

Manufacture in which all the materials used are classified within a heading other than that of the product. However, natural magnesium carbonate (magnesite) may be used

 

ex 2520

Plasters specially prepared for dentistry

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

ex 2524

Natural asbestos fibres

Manufacture from asbestos concentrate

 

ex 2525

Mica powder

Grinding of mica or mica waste

 

ex 2530

Earth colours, calcined or powdered

Calcination or grinding of earth colours

 

Ch. 26

Ores, slag and ash

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex Ch. 27

Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes; except for heading Nos ex 2707 and 2709 to 2715 for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex 2707

Oils in which the weight of the aromatic constituents exceeds that of the non-aromatic constituents, being oils similar to mineral oils obtained by distillation of high temperature coal tar, of which more than 65% by volume distils at a temperature of up to 250oC (including mixtures of petroleum spirit and benzole), for use as power or heating fuels

These are Appendix VII products

 

2709 to 2715

Mineral oils and products of their distillation; bituminous substances; mineral waxes

These are Appendix VII products

 

ex Ch. 28

Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes; except for heading Nos ex 2811 , ex 2833 and ex 2840 for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex 2811

Sulphur trioxide

Manufacture from sulphur dioxide

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex 2833

Aluminium sulphate

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

ex 2840

Sodium perborate

Manufacture from disodium tetraborate pentahydrate

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex Ch. 29

Organic chemicals; except for heading Nos ex 2901 , ex 2902 , ex 2905 , 2915, 2932, 2933 and 2934, for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex 2901

Acyclic hydrocarbons for use as power or heating fuels

These are Appendix VII products

 

ex 2902

Cyclanes and cyclenes (other than azulenes), benzene, toluene, xylenes, for use as power or heating fuels

These are Appendix VII products

 

ex 2905

Metal alcoholates of alcohols of this heading and of ethanol or glycerol

Manufacture from materials of any heading, including other materials of heading No 2905. However, metal alcoholates of this heading may be used, provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

2915

Saturated acyclic monocarboxylic acids and their anhydrides, halides, peroxides and peroxyacids; their halogenated, sulphonated, nitrated or nitrosated derivatives

Manufacture from materials of any heading. However, the value of all the materials of heading Nos 2915 and 2916 used may not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

2932

Heterocyclic compounds with oxygen hetero-atom(s) only:

 

 

- Internal ethers and their halogenated, sulphonated, nitrated or nitrosated derivatives

Manufacture from materials of any heading. However, the value of all the materials of heading No 2909 used may not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

- Cyclic acetals and internal hemiacetals and their halogenated, sulphonated, nitrated or nitrosated derivatives

Manufacture from materials of any heading

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

- Other

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials of this heading may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

2933

Heterocyclic compounds with nitrogen hetero-atom(s) only: nucleic acids and their salts

Manufacture from materials of any heading. However, the value of all the materials of heading Nos 2932 and 2933 used may not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

2934

Other heterocyclic compounds

Manufacture from materials of any heading. However, the value of all the materials of heading Nos 2932, 2933 and 2934 used may not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex Ch. 30

Pharmaceutical products; except for heading Nos 3002, 3003 and 3004, for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product

 

3002

Human blood; animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera and other blood fractions; vaccines, toxins, cultures of micro-organisms (excluding yeasts) and similar products:

 

 

- Products consisting of two or more constituents which have been mixed together for therapeutic or prophylactic uses or unmixed products for these uses, put up in measured doses or in forms or packings for retail sale

Manufacture from materials of any heading, including other materials of heading No 3002. The materials of this description may also be used, provided their value does not exceed 20% of the ex-works price of the product

 

- Other:

 

 

- - Human blood

Manufacture from materials of any heading, including other materials of heading No 3002. The materials of this description may also be used, provided their value does not exceed 20% of the ex-works price of the product

 

- - Animal blood prepared for therapeutic or prophylactic uses

Manufacture from materials of any heading, including other materials of heading No 3002. The materials of this description may also be used, provided their value does not exceed 20% of the ex-works price of the product

 

- - Blood fractions other than antisera, haemoglobin and serum globulin

Manufacture from materials of any heading, including other materials of heading No 3002. The materials of this description may also be used, provided their value does not exceed 20% of the ex-works price of the product

 

- - Haemoglobin, blood globulin and serum globulin

Manufacture from materials of any heading, including other materials of heading No 3002. The materials of this description may also be used, provided their value does not exceed 20% of the ex-works price of the product

 

- - Other

Manufacture from materials of any heading, including other materials of heading No 3002. The materials of this description may also be used, provided their value does not exceed 20% of the ex-works price of the product

 

3003 and 3004

Medicaments (excluding goods of heading Nos 3002, 3005 or 3006)

Manufacture in which:

all the materials used are classified within a heading other than that of the product. However, materials of heading Nos 3003 or 3004 may be used provided their value, taken together, does not exceed 20% of the ex-works price of the product, and

the value of all the materials used does not exceed 50% of the ex-works price of the product

 

ex Ch. 31

Fertilizers except for heading No ex 3105 for which the rule is set out below

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex 3105

Mineral or chemical fertilizers containing two or three of the fertilizing elements nitrogen, phosphorous and potassium; other fertilizers; goods of this chapter, in tablets or similar forms or in packages of a gross weight not exceeding 10 kg, except for:

Sodium nitrate

Calcium cyanamide

Potassium sulphate

Magnesium potassium sulphate

Manufacture in which:

all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product, and

the value of all the materials used does not exceed 50% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex Ch. 32

Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks; except for heading Nos ex 3201 and 3205, for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex 3201

Tannins and their salts, esters, ethers, and other derivatives

Manufacture from tanning extracts of vegetable origin

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

3205

Colour lakes; preparations as specified in Note 3 to this chapter based on colour lakes (2)

Manufacture from materials of any heading, except heading Nos 3203, 3204 and 3205. However, materials from heading No 3205 may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex Ch. 33

Essential oils and resinoids; perfumery, cosmetic or toilet preparations; except for heading No 3301, for which the rule is set out below

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

3301

Essential oils (terpeneless or not), including concretes and absolutes; resinoids; concentrates of essential oils in fats, in fixed oils, in waxes or the like, obtained by enfleurage or maceration; terpenic by-products of the deterpenation of essential oils; aqueous distillates and aqueous solutions of essential oils

Manufacture from materials of any heading, including materials of a different ‘group’ (3) in this heading, However, materials of the same group may be used, provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex Ch. 34

Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, ‘dental waxes’ and dental preparations with a basis of plaster; except for heading Nos ex 3403 and 3404, for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex 3403

Lubricating preparations containing petroleum oils or oils obtained from bituminous minerals, provided they represent less than 70% by weight

These are Appendix VII products

 

3404

Artificial waxes and prepared waxes:

 

 

- With a basis of paraffin, petroleum waxes, waxes obtained from bituminous minerals, slack wax or scale wax

These are Appendix VII products

 

- Other

Manufacture from materials of any heading, except:

Hydrogenated oils having the character of waxes of heading No 1516

Fatty acids not chemically defined or industrial fatty alcohols having the character of waxes of heading No 1519

Materials of heading No 3404

However, these materials may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex Ch. 35

Albuminoidal substances; modified starches; glues; enzymes; except for heading Nos 3501, 3502, 3505 and ex 3507 . The rules for heading Nos ex 3502 , ex 3505 and ex 3507 are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex 3502

Egg albumin unfit, or to be rendered unfit, for human consumption; milk albumin (lactalbumin), unfit, or to be rendered unfit, for human consumption

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex 3505

Dextrins and other modified starches, except starches, esterified or etherified; glues based on starches, or on dextrins or other modified starches

Manufacture from materials of any heading, except those of heading No 1108

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex 3507

Prepared enzymes not elsewhere specified or included

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

Ch. 36

Explosives; pyrotechnic products; matches; pyrophoric alloys; certain combustible preparations

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex Ch. 37

Photographic or cinematographic goods; except for heading Nos 3701, 3702 and 3704 for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

3701

Photographic plates and film in the flat, sensitized, unexposed, of any material other than paper, paperboard or textiles; instant print film in the flat, sensitized, unexposed, whether or not in packs:

 

 

- Instant print film for colour photography, in packs

Manufacture in which all the materials used are classified within a heading other than heading Nos 3701 or 3702. However, materials from heading No 3702 may be used provided their value does not exceed 30% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

- Other

Manufacture in which all the materials used are classified within a heading other than heading Nos 3701 or 3702. However, materials from heading Nos 3701 and 3702 may be used provided their value taken together, does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

3702

Photographic film in rolls, sensitized, unexposed, of any material other than paper, paperboard or textiles; instant print film in rolls, sensitized, unexposed

Manufacture in which all the materials used are classified within a heading other than heading Nos 3701 or 3702

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

3704

Photographic plates, film paper, paperboard and textiles, exposed but not developed

Manufacture in which all the materials used are classified within a heading other than heading Nos 3701 to 3704

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex Ch. 38

Miscellaneous chemical products; except for heading Nos 3801, ex 3803 , ex 3805 , ex 3806 , ex 3807 , 3808 to 3814, 3818 to 3820, 3822 and 3823 for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

3801

Artificial graphite; colloidal or semi-colloidal graphite; preparations based on graphite or other carbon in the form of pastes, blocks, plates or other semi-manufactures:

 

 

- Colloidal graphite in suspension in oil and semi-colloidal graphite; carbonaceous pastes for electrodes

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

- Graphite in paste form, being a mixture of more than 30% by weight of graphite with mineral oils

Manufacture in which the value of all. the materials of heading No 3403 used does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

- Other

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials of this heading may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex 3803

Refined tall oil

Refining of crude tall oil

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex 3805

Spirits of sulphate turpentine, purified

Purification by distillation or refining of raw spirits of sulphate turpentine

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex 3806

Ester gums

Manufacture from resin acids

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

ex 3807

Wood pitch (wood tar pitch)

Distillation of wood tar

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

3808

Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant-growth regulators, disinfectants and similar products, put up in forms or packings for retail sale or as preparations or articles (for example, sulphur-treated bands, wicks and candles, and fly-papers)

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the products

 

3809

Finishing agents, dye carriers to accelerate the dyeing or fixing of dyestuffs and other products and preparations (for example, dressings and mordants), of a kind used in the textile, paper, leather or like industries, not elsewhere specified or included

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the products

 

3810

Pickling preparations for metal surfaces; fluxes and other auxiliary preparations for soldering, brazing or welding; soldering, brazing or welding powders and pastes consisting of metal and other materials; preparations of a kind used as cores or coatings for welding electrodes or rods

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the products

 

3811

Anti-knock preparations, oxidation inhibitors, gum inhibitors, viscosity improvers, anti-corrosive preparations and other prepared additives, for mineral oils (including gasoline) or for other liquids used for the same purposes as mineral oils:

 

 

- Prepared additives for lubricating oil, containing petroleum oils or oils obtained from bituminous minerals

These are Appendix VII products

 

- Other

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

3812

Prepared rubber accelerators; compound plasticizers for rubber or plastics, not elsewhere specified or included; anti-oxidizing preparations and other compound stabilizers for rubber or plastics

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

3813

Preparations and charges for fire-extinguishers; charged fire-extinguishing grenades

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

3814

Organic composite solvents and thinners, not elsewhere specified or included; prepared paint or varnish removers

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

3818

Chemical elements doped for use in electronics, in the form of discs, wafers or similar forms; chemical compounds doped for use in electronics

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

3819

Hydraulic brake fluids and other prepared liquids for hydraulic transmission, not containing or containing less than 70% by weight of petroleum oils or oils obtained from bituminous minerals

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

3820

Anti-freezing preparations and prepared de-icing fluids

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

3822

Composite diagnostic or laboratory reagents, other than those of heading Nos 3002 or 3006

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

3823

Prepared binders for foundry moulds or cores; chemical products and preparations of the chemical or allied industries (including those consisting of mixtures of natural products), not elsewhere specified or included; residual products of the chemical or allied industries, not elsewhere specified or included:

 

 

- The following of this heading:

- - Prepared binders for foundry moulds or cores based on natural resinous products

- - Naphthenic acids, their water insoluble salts and their esters

- - Sorbitol other than that of heading No 2905

- - Petroleum sulphonates, excluding petroleum sulphonates of alkali metals, of ammonium or of ethanolamines; thiophenated sulphonic acids of oils obtained from bituminous minerals, and their salts

- - Ion exchangers

- - Getters for vacuum tubes

- - Alkaline iron oxide for the purification of gas

- - Ammoniacal gas liquors and spent oxide produced in coal gas purification

- - Sulphonaphthenic acids, their water insoluble salts and their esters

- - Fusel oil and Dippel's oil

- - Mixtures of salts having different anions

- - Copying pastes with a basis of gelatin, whether or not on a paper or textile backing

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 40% of the ex-works price of the product

- Other

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

ex 3901 to 3915

Plastics in primary forms, waste, parings and scrap, of plastic; except for heading No ex 3907 for which the rule is set out below:

 

 

- Addition homopolymerization products

Manufacture in which:

the value of all the materials used does not exceed 50% of the ex-works price of the product, and

the value of any materials of Chapter 39 used does not exceed 20% of the ex-works price of the product (4)

Manufacture in which the value of all the materials used does not exceed 25% of the ex-works price of the product

- Other

Manufacture in which the value of any materials of Chapter 39 used does not exceed 20% of the ex-works price of the product (4)

Manufacture in which the value of all the materials used does not exceed 25% of the ex-works price of the product

ex 3907

Copolymer, made from polycarbonate and acrylonitrile-butadienestyrene copolymer (ABS)

Manufacture in which all the materials used are classified within a heading other than that of the product. However, materials classified within the same heading may be used provided their value does not exceed 50% of the ex-works price of the product (4)

 

ex 3916 to 3921

Semi-manufactures and articles of plastics; except for heading Nos ex 3916 , ex 3917 and ex 3920 , for which the rules are set out below:

 

 

- Flat products, further worked than only surface worked or cut into forms other than rectangular (including square), other products, further worked than only surface worked

Manufacture in which the value of any materials of Chapter 39 used does not exceed 50% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 25% of the ex-works price of the product

- Other

 

 

- - Addition homopolymerization products

Manufacture in which:

the value of all the materials used does not exceed 50% of the ex-works price of the product, and Manufacture in which the value of all the materials used does not exceed 25% of the ex-works price of the product

the value of any materials of Chapter 39 used does not exceed 20% of the ex-works price of the product (4)

Manufacture in which the value of all the materials used does not exceed 25% of the ex-works price of the product

- Other

Manufacture in which the value of any materials of Chapter 39 used does not exceed 20% of the ex-works price of the product (4)

Manufacture in which the value of all the materials used does not exceed 25% of the ex-works price of the product

ex 3916 and ex 3917

Profile shapes and tubes

Manufacture in which:

the value of all the materials used does not exceed 50% of the ex-works price of the product, and

the value of any materials classified within the same heading as the product does not exceed 20% of the ex-works price of the product

Manufacture in which the value of all the materials used does not exceed 25% of the ex-works price of the product

ex 3920

Ionomer sheet or film

Manufacture from a thermoplastic partial salt which is a copolymer of ethylene and metacrylic acid partly neutralized with metal ions, mainly zinc and sodium

Manufacture in which the value of all the materials used does not exceed 25% of the ex-works price of the product

3922 to 3926

Articles of plastics

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

ex Ch. 40

Rubber and articles thereof; except for heading Nos ex 4001 , 4005, 4012 and ex 4017 for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex 4001

Laminated slabs of crepe rubber for shoes

Lamination of sheets of natural rubber

 

4005

Compound rubber, unvulcanized, in primary forms or in plates, sheets or strip

Manufacture in which the value of all the materials used, except natural rubber, does not exceed 50% of the ex-works price of the product

 

4012

Retreaded or used pneumatic tyres of rubber; solid or cushion tyres, interchangeable tyre treads and tyre flaps, of rubber:

 

 

- Retreaded pneumatic, solid or cushion, tyres of rubber

Retreading of used tyres

 

- Other

Manufacture from materials of any heading, except those of heading Nos 4011 or 4012

 

ex 4017

Articles of hard rubber

Manufacture from hard rubber

 

ex Ch. 41

Raw hides and skins (other than furskins) and leather; except for heading Nos ex 4102 , 4104 to 4107 and 4109 for which the rules are set below

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex 4102

Raw skins of sheep or lambs, without wool on

Removal of wool from sheep or lamb skins, with wool on

 

4104 to 4107

Leather, without hair or wool, other than leather of heading Nos 4108 or 4109

Retanning of pre-tanned leather

or

Manufacture in which all the materials used are classified within a heading other than that of the product

 

4109

Patent leather and patent laminated leather; metallized leather

Manufacture from leather of heading Nos 4104 to 4107 provided its value does not exceed 50% of the ex-works price of the product

 

Ch. 42

Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silk worm gut)

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex Ch. 43

Furskins and artificial fur; manufactures thereof; except for heading Nos ex 4302 and 4303 for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex 4302

Tanned or dressed furskins, assembled:

 

 

- Plates, crosses and similar forms

Bleaching or dyeing, in addition to cutting and assembly of non-assembled tanned or dressed furskins

 

- Other

Manufacture from non-assembled, tanned or dressed furskins

 

4303

Articles of apparel, clothing accessories and other articles of furskin

Manufacture from non-assembled tanned or dressed furskins of heading No 4302

 

ex Ch. 44

Wood and articles of wood; wood charcoal; except for heading Nos ex 4403 , ex 4407 , ex 4408 , 4409, ex 4410 to ex 4413 , ex 4415 , ex 4416 , 4418 and ex 4421 for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex 4403

Wood roughly squared

Manufacture from wood in the rough, whether or not stripped of its bark or merely roughed down

 

ex 4407

Wood sawn or chipped lengthwise, sliced or peeled, of a thickness exceeding 6 mm, planed, sanded or finger-jointed

Planing, sanding or finger-jointing

 

ex 4408

Veneer sheets and sheets for plywood, of a thickness not exceeding 6 mm, spliced, and other wood sawn lengthwise, sliced or peeled of a thickness not exceeding 6 mm, planed, sanded or finger-jointed

Splicing, planing, sanding or finger-jointing

 

4409

Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, beaded, moulded, rounded or the like) along any of its edges or faces, whether or not planed, sanded or finger-jointed:

 

 

- Sanded or finger-jointed

Sanding or finger-jointing

 

- Beadings and mouldings

Beading or moulding

 

- Other

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex 4410 to ex 4413

Beadings and mouldings, including moulded skirting and other moulded boards

Beading or moulding

 

ex 4415

Packing cases, boxes, crates, drums and similar packings, of wood

Manufacture from boards not cut to size

 

ex 4416

Casks, barrels, vats, tubs and other coopers' products and parts thereof, of wood

Manufacture from riven staves, not further worked than sawn on the two principal surfaces

 

4418

Builders' joinery and carpentry of wood, including cellular wood panels, assembled parquet panels, shingles and shakes:

 

 

- Builders' joinery and carpentry of wood

Manufacture in which all the materials used are classified within a heading other than that of the product. However, cellular wood panels, shingles and shakes may be used

 

- Beadings and mouldings

Beading or moulding

 

- Other

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex 4421

Match splints; wooden pegs or pins for footwear

Manufacture from wood of any heading except drawn wood of heading No 4409

 

ex Ch. 45

Cork and articles of cork; except for heading No 4503 for which the rule is set out below

Manufacture in which all the materials used are classified within a heading other than that of the product

 

4503

Articles of natural cork

Manufacture from cork of heading No 4501

 

Ch. 46

Manufactures of straw, of esparto or of other plaiting materials; basketware and wickerwork

Manufacture in which all the materials used are classified within a heading other than that of the product

 

Ch. 47

Pulp of wood or of other fibrous cellulosic material; waste and scrap of paper or paperboard

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex Ch. 48

Paper and paperboard; articles of paper pulp, of paper or of paperboard; except for heading Nos ex 4811 , 4816, 4817, ex 4818 , ex 4819 , ex 4820 and ex 4823 for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex 4811

Paper and paperboard, ruled, lined or squared only

Manufacture from paper-making materials of Chapter 47

 

4816

Carbon paper, self-copy paper and other copying or transfer papers (other than those of heading No 4809), duplicator stencils and offset plates, of paper, whether or not put up in boxes

Manufacture from paper-making materials of Chapter 47

 

4817

Envelopes, letter cards, plain postcards and correspondence cards, of paper or paperboard; boxes, pouches, wallets and writing compendiums, of paper or paperboard, containing an assortment of paper stationery

Manufacture in which:

all the materials used are classified within a heading other than that of the product, and

the value of all the materials used does not exceed 50% of the ex-works price of the product

 

ex 4818

Toilet paper

Manufacture from paper-making materials of Chapter 47

 

ex 4819

Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibres

Manufacture in which:

all the materials used are classified within a heading other than that of the product, and

the value of all the materials used does not exceed 50% of the ex-works price of the product

 

ex 4820

Letter pads

Manufacture in which the value of all the materials used does not exceed 50% of the ex-works price of the product

 

ex 4823

Other paper, paperboard, cellulose wadding and webs of cellulose fibres, cut to size or shape

Manufacture from paper-making materials of Chapter 47

 

ex Ch. 49

Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans; except for heading Nos 4909 and 4910 for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product

 

4909

Printed or illustrated postcards; printed cards bearing personal greetings, messages or announcements, whether or not illustrated, with or without envelopes or trimmings

Manufacture from materials not classified within heading Nos 4909 or 4911

 

4910

Calendars of any kind, printed, including calendar blocks:

 

 

Calendars of the ‘perpetual’ type or with replaceable blocks mounted on bases other than paper or paperboard

Manufacture in which:

all the materials used are classified within a heading other than that of the product, and

the value of all the materials used does not exceed 50% of the ex-works price of the product

 

- Other

Manufacture from materials not classified in heading Nos 4909 or 4911

 

ex Ch. 50

Silk; except for heading Nos ex 5003 , 5004 to ex 5006 and 5007 for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product

 

ex 5003

Silk waste (including cocoons unsuitable for reeling, yarn waste and garnetted stock), carded or combed

Carding or combing of silk waste

 

5004 to ex 5006

Silk yarn and yarn spun from silk waste

Manufacture from: (5)

raw silk or silk waste carded or combed or otherwise prepared for spinning,

other natural fibres not carded or combed or otherwise prepared for spinning,

chemical materials or textile pulp, or

paper-making materials

 

5007

Woven fabrics of silk or of silk waste:

Manufacture from single yarn (5)

 

- Incorporating rubber thread

 

 

- Other

Manufacture from: (5)

coir yarn,

natural fibres,

man-made staple fibres not carded or combed or otherwise prepared for spinning,

chemical materials or textile pulp, or

paper

or

Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerizing, heat-setting, raising, calendering, shrink resistance processing, permanent finishing, decatizing, impregnating, mending and burling) where the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product

 

ex Ch. 51

Wool, fine or coarse animal hair; horsehair yarn and woven fabric; except for heading Nos 5106 to 5110 and 5111 to 5113 for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product

 

5106 to 5110

Yarn of wool, of fine or coarse animal hair or of horsehair

Manufacture from: (5)

raw silk or silk waste carded or combed or otherwise prepared for spinning,

natural fibres not carded or combed or otherwise prepared for spinning,

chemical materials or textile pulp, or

paper-making materials

 

5111 to 5113

Woven fabrics of wool, of fine or coarse animal hair or of horsehair:

 

 

- Incorporating rubber thread

Manufacture from single yarn (5)

 

- Other

Manufacture from: (5)

coir yarn,

natural fibres,

man-made staple fibres not carded or combed or otherwise prepared for spinning,

chemical materials or textile pulp, or

paper

or

Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerizing, heat-setting, raising, calendering, shrink resistance processing, permanent finishing, decatizing, impregnating, mending and burling) where the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product

 

ex Ch. 52

Cotton; except for heading Nos 5204 to 5207 and 5208 to 5212 for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product

 

5204 to 5207

Yarn and thread of cotton

Manufacture from: (5)

raw silk or silk waste carded or combed or otherwise prepared for spinning,

natural fibres not carded or combed or otherwise prepared for spinning,

chemical materials or textile pulp, or

paper-making materials

 

5208 to 5212

Woven fabrics of cotton:

Manufacture from single yarn (5)

 

- Incorporating rubber thread

 

 

- Other

Manufacture from: (5)

coir yarn,

natural fibres,

man-made staple fibres not carded or combed or otherwise prepared for spinning,

chemical materials or textile pulp, or

paper

or

Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerizing, heat-setting, raising, calendering, shrink resistance processing, permanent finishing, decatizing, impregnating, mending and burling) where the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product

 

ex Ch. 53

Other vegetable textile fibres; paper yarn and woven fabrics of paper yarn; except for heading Nos 5306 to 5308 and 5309 to 5311 for which the rules are set out below

Manufacture in which all the materials used are classified within a heading other than that of the product

 

5306 to 5308

Yarn of other vegetable textile fibres; paper yarn

Manufacture from: (5)

raw silk or silk waste carded or combed or otherwise prepared for spinning,

natural fibres not carded or combed or otherwise prepared for spinning,

chemical materials or textile pulp, or

paper-making materials

 

5309 to 5311

Woven fabrics of other vegetable textile fibres; woven fabrics of paper yarn:

 

 

- Incorporating rubber thread

Manufacture from single yarn (5)

 

- Other

Manufacture from: (5)

coir yarn,

natural fibres,

man-made staple fibres not carded or combed or otherwise prepared for spinning,

chemical materials or textile pulp, or

paper

or

Printing accompanied by at least two preparatory or finishing operations (such as scouring, bleaching, mercerizing, heat-setting, raising, calendering, shrink resistance processing, permanent finishing, decatizing, impregnating, mending and burling) where the value of the unprinted fabric used does not exceed 47.5% of the ex-works price of the product